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Digital Brands Group (Digital Brands Group) Operating Income : $-9.50 Mil (TTM As of Mar. 2024)


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What is Digital Brands Group Operating Income?

Digital Brands Group's Operating Income for the three months ended in Mar. 2024 was $-0.23 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $-9.50 Mil.

Warning Sign:

Digital Brands Group 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. Digital Brands Group's Operating Income for the three months ended in Mar. 2024 was $-0.23 Mil. Digital Brands Group's Revenue for the three months ended in Mar. 2024 was $3.58 Mil. Therefore, Digital Brands Group's Operating Margin % for the quarter that ended in Mar. 2024 was -6.29%.

Digital Brands Group'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. Digital Brands Group's annualized ROC % for the quarter that ended in Mar. 2024 was -3.22%. Digital Brands Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -111.96%.


Digital Brands Group Operating Income Historical Data

The historical data trend for Digital Brands Group'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.

Digital Brands Group Operating Income Chart

Digital Brands Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
-4.85 -7.51 -19.18 -15.99 -12.79

Digital Brands Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -3.69 -3.08 -3.42 -2.77 -0.23

Digital Brands Group 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 Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-9.50 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.


Digital Brands Group  (NAS:DBGI) Operating Income Explanation

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

Digital Brands Group's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-0.9 * ( 1 - 0% )/( (28.397 + 27.477)/ 2 )
=-0.9/27.937
=-3.22 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

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

Digital Brands Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-0.716/( ( (0.745 + max(-9.451, 0)) + (0.534 + max(-7.993, 0)) )/ 2 )
=-0.716/( ( 0.745 + 0.534 )/ 2 )
=-0.716/0.6395
=-111.96 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.117 + 4.85 + 0.276) - (14.594 + 0 + 0.099999999999998)
=-9.451

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.334 + 4.648 + -0.156) - (12.72 + 0 + 0.098999999999997)
=-7.993

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

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

Digital Brands Group's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=-0.225/3.577
=-6.29 %

* 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.


Digital Brands Group Operating Income Related Terms

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Digital Brands Group (Digital Brands Group) Business Description

Traded in Other Exchanges
N/A
Address
1400 Lavaca Street, Austin, TX, USA, 78701
Digital Brands Group Inc offers a variety of apparel through numerous brands on a both direct-to-consumer and wholesale basis. The company has expanded into an omnichannel brand offering the styles and content not only online but at selected wholesale and retail storefronts. Its brand portfolio consists of Bailey 44, DSTLD, Harper & Jones, Stateside, and Sundry.
Executives
Drew Jones 10 percent owner 2736 ROUTH STREET, DALLAS TX 75202
Huong Doan director 1400 LAVACA STREET, AUSTIN TX 78701
Trevor Pettennude director 1400 LAVACA STREET, AUSTIN TX 78701
Moise Emquies director 1400 LAVACA STREET, AUSTIN TX 78701
Laura Dowling officer: Chief Marketing Officer 1400 LAVACA STREET, AUSTIN TX 78701
Jameeka Aaron director 1400 LAVACA STREET, AUSTIN TX 78701
Reid William Yeoman officer: Chief Financial Officer 1400 LAVACA STREET, AUSTIN TX 78701
Mark Thomas Lynn director 1400 LAVACA STREET, AUSTIN TX 78791
Davis John Hilburn Iv officer: Pres., CEO 1400 LAVACA STREET, AUSTIN TX 78701