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Avaya Holdings (Avaya Holdings) Operating Income : $44 Mil (TTM As of Jun. 2022)


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What is Avaya Holdings Operating Income?

Avaya Holdings's Operating Income for the three months ended in Jun. 2022 was $-69 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2022 was $44 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Avaya Holdings's Operating Income for the three months ended in Jun. 2022 was $-69 Mil. Avaya Holdings's Revenue for the three months ended in Jun. 2022 was $577 Mil. Therefore, Avaya Holdings's Operating Margin % for the quarter that ended in Jun. 2022 was -11.96%.

Avaya Holdings's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Avaya Holdings's annualized ROC % for the quarter that ended in Jun. 2022 was -6.37%. Avaya Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2022 was -1,302.55%.


Avaya Holdings Operating Income Historical Data

The historical data trend for Avaya Holdings'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.

Avaya Holdings Operating Income Chart

Avaya Holdings Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 318.00 208.00 215.00 221.00 239.00

Avaya Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 46.00 75.00 6.00 32.00 -69.00

Avaya Holdings 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 Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $44 Mil.

* 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.


Avaya Holdings  (OTCPK:AVYAQ) Operating Income Explanation

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

Avaya Holdings's annualized ROC % for the quarter that ended in Jun. 2022 is calculated as:

ROC % (Q: Jun. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2022 ) + Invested Capital (Q: Jun. 2022 ))/ count )
=-276 * ( 1 - -1% )/( (5066 + 3686)/ 2 )
=-278.76/4376
=-6.37 %

where

Note: The Operating Income data used here is four times the quarterly (Jun. 2022) data.

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

Avaya Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2022 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2022  Q: Jun. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-5360/( ( (419 + max(-293, 0)) + (404 + max(-267, 0)) )/ 2 )
=-5360/( ( 419 + 404 )/ 2 )
=-5360/411.5
=-1,302.55 %

where Working Capital is:

Working Capital(Q: Mar. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(315 + 49 + 247) - (434 + 315 + 155)
=-293

Working Capital(Q: Jun. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(305 + 50 + 229) - (434 + 264 + 153)
=-267

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2022) EBIT data.

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

Avaya Holdings's Operating Margin % for the quarter that ended in Jun. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2022 )/Revenue (Q: Jun. 2022 )
=-69/577
=-11.96 %

* 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.

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.


Avaya Holdings Operating Income Related Terms

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Avaya Holdings (Avaya Holdings) Business Description

Traded in Other Exchanges
N/A
Address
2605 Meridian Parkway, Suite 200, Durham, NC, USA, 27713
Avaya Holdings Corp provides digital communications products, solutions, and services for businesses. The company has two operating segments namely Products and Solutions, and Services. Products and Solutions offer Unified Communications and Contact Center platforms, applications and devices. It helps to offer an open, extensible development platform so that customers and third parties can easily create custom applications and automated workflows for their unique needs. Whereas Services consists of three business areas: Global Support Services, Enterprise Cloud and Managed Services and Professional Services. The company generates maximum revenue from the Services segment. Geographically, it derives a majority of revenue from the U.S.
Executives
Carrie W. Teffner director 200 DOMAIN DRIVE, STRATHAM NH 03885
King Theodore Walker Cheng-de 10 percent owner UNIT 1502, 15TH FLOOR, 99 HENNESSY ROAD, WANCHAI K3 999077
Jill Kathleen Frizzley director P.O. BOX 1541, ONE BLUE HILL PLAZA, PEARL RIVER NY 10965
Anna-marie Crowley officer: GVP, Human Resources C/O AVAYA, 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Vito Carnevale officer: SVP, General Counsel C/O AVAYA, 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Rebecca A Roof officer: Interim CFO C/O LORDSTOWN MOTORS CORP., 2300 HALLOCK YOUNG ROAD, LORDSTOWN OH 44481
Alan Masarek director, officer: President and CEO C/O VONAGE HOLDINGS CORP., 23 MAIN STREET, HOLMDEL NJ 07733
Stephen Spears officer: EVP and Chief Revenue Officer C/O AVAYA, 2605 MERIDIAN PKWY, SUITE 200, DURHAM NC 27713
James M Chirico director, officer: President & CEO 2605 MERIDIAN PARKWAY, DURHAM NC 27713
Kevin Speed officer: VP, Controller & CAO AVAYA, 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Kieran J Mcgrath officer: SVP & CFO 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Shefali A Shah officer: SVP, CAO and General Counsel C/O AVAYA, ONE PENN PLAZA, 16TH FLOOR, NEW YORK NY 10119
Susan Louise Spradley director C/O NORTEL NETWORKS, 8200 DIXIE ROAD STE 100, BRAMPTON ONTARIO A6 L6T 5PT
Robert I Theis director
Anthony Bartolo officer: EVP, Chief Product Officer C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606

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