Artificial Intelligence Technology Solutions (Artificial Intelligence Technology Solutions) Operating Income : $-11.58 Mil (TTM As of Nov. 2023)

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What is Artificial Intelligence Technology Solutions Operating Income?

Artificial Intelligence Technology Solutions's Operating Income for the three months ended in Nov. 2023 was $-2.39 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Nov. 2023 was $-11.58 Mil.

Warning Sign:

Artificial Intelligence Technology Solutions Inc has never been profitable in the past 3 years. It lost money every year.

Operating Margin % is calculated as Operating Income divided by its Revenue. Artificial Intelligence Technology Solutions's Operating Income for the three months ended in Nov. 2023 was $-2.39 Mil. Artificial Intelligence Technology Solutions's Revenue for the three months ended in Nov. 2023 was $0.60 Mil. Therefore, Artificial Intelligence Technology Solutions's Operating Margin % for the quarter that ended in Nov. 2023 was -399.50%.

Good Sign:

Artificial Intelligence Technology Solutions Inc operating margin is expanding. Margin expansion is usually a good sign.

Artificial Intelligence Technology Solutions's 5-Year average Growth Rate for Operating Margin % was 21.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Artificial Intelligence Technology Solutions's annualized ROC % for the quarter that ended in Nov. 2023 was -51.07%. Artificial Intelligence Technology Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Nov. 2023 was -282.17%.

Artificial Intelligence Technology Solutions Operating Income Historical Data

The historical data trend for Artificial Intelligence Technology Solutions's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Artificial Intelligence Technology Solutions Operating Income Chart

Artificial Intelligence Technology Solutions Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Operating Income

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-3.34

-1.79

-2.99

-13.40

-12.69

Artificial Intelligence Technology Solutions Quarterly Data
	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23
Operating Income	Get a 7-Day Free Trial															-2.82	-3.20	-2.95	-3.05	-2.39

Artificial Intelligence Technology Solutions Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Nov. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-11.58 Mil.

Artificial Intelligence Technology Solutions (OTCPK:AITX) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Artificial Intelligence Technology Solutions's annualized ROC % for the quarter that ended in Nov. 2023 is calculated as:

	ROC % (Q: Nov. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2023 )	+	Invested Capital (Q: Nov. 2023 ))	/ count )
=	-9.54 * ( 1 - 0% )	/	( (23.977	+	13.382)	/ 2 )
=	-9.54	/	18.6795
=	-51.07 %

where

	Invested Capital		(Q: Aug. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	7.47	-	8.109	-	( 1.512	-	max(0, 28.754	-	4.138	+	1.512	))
=	23.977

	Invested Capital		(Q: Nov. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	7.136	-	6.699	-	( 0.097	-	max(0, 16.459	-	3.514	+	0.097	))
=	13.382

Note: The Operating Income data used here is four times the quarterly (Nov. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Artificial Intelligence Technology Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Nov. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Nov. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Aug. 2023		Q: Nov. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-9.54	/	( ( (3.234 + max(-6.186, 0))	+	(3.528 + max(-4.125, 0)) )	/	2 )
=	-9.54	/	( ( 3.234	+	3.528 )	/	2 )
=	-9.54	/	3.381
=	-282.17 %

where Working Capital is:

	Working Capital		(Q: Aug. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.261	+	1.69	+	0.675)	-	(8.109	+	0.702	+	0.0010000000000012)
=	-6.186

	Working Capital		(Q: Nov. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.505	+	2.22	+	0.692)	-	(6.699	+	0.843	+	0)
=	-4.125

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Nov. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Artificial Intelligence Technology Solutions's Operating Margin % for the quarter that ended in Nov. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Nov. 2023 )	/	Revenue (Q: Nov. 2023 )
	=	-2.385	/	0.597
	=	-399.50 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Artificial Intelligence Technology Solutions Operating Income Related Terms

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Artificial Intelligence Technology Solutions (Artificial Intelligence Technology Solutions) Business Description

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Address

10800 Galaxie Avenue, Ferndale, MI, USA, 48220

Website

https://aitx.ai

Artificial Intelligence Technology Solutions Inc through its wholly-owned subsidiary delivers robotics and artificial intelligence-based solutions for operational, security, and monitoring needs. It also creates its own software leading to the development of powerful tools such as RADSOC, RADPMC, and RADGuard.