Financial Gravity (Financial Gravity) Operating Income : $-0.08 Mil (TTM As of Jun. 2023)

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What is Financial Gravity Operating Income?

Financial Gravity's Operating Income for the three months ended in Jun. 2023 was $-0.07 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was $-0.08 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Financial Gravity's Operating Income for the three months ended in Jun. 2023 was $-0.07 Mil. Financial Gravity's Revenue for the three months ended in Jun. 2023 was $1.68 Mil. Therefore, Financial Gravity's Operating Margin % for the quarter that ended in Jun. 2023 was -4.22%.

Good Sign:

Financial Gravity Companies Inc operating margin is expanding. Margin expansion is usually a good sign.

Financial Gravity's 5-Year average Growth Rate for Operating Margin % was 18.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Financial Gravity's annualized ROC % for the quarter that ended in Jun. 2023 was -7.83%. Financial Gravity's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 was -205.80%.

Financial Gravity Operating Income Historical Data

The historical data trend for Financial Gravity'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.

Financial Gravity Operating Income Chart

Financial Gravity Annual Data

Trend

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Operating Income

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-1.41

-0.48

-0.91

-0.70

-0.63

Financial Gravity Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Jun23
Operating Income	Get a 7-Day Free Trial															-0.40	-0.29	0.13	-0.13	-0.07

Financial Gravity 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. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.08 Mil.

Financial Gravity (OTCPK:FGCO) Operating Income Explanation

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

Financial Gravity's annualized ROC % for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-0.284 * ( 1 - 0% )	/	( (3.728	+	3.527)	/ 2 )
=	-0.284	/	3.6275
=	-7.83 %

where

	Invested Capital		(Q: Dec. 2022 )
=	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	))
=	3.828	-	1.373	-	( 0.12	-	max(0, 1.692	-	0.419	+	0.12	))
=	3.728

	Invested Capital		(Q: Jun. 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	))
=	3.928	-	1.125	-	( 0.108	-	max(0, 1.223	-	0.499	+	0.108	))
=	3.527

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

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

Financial Gravity's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2022		Q: Jun. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-0.284	/	( ( (0.161 + max(-1.252, 0))	+	(0.115 + max(-1.095, 0)) )	/	2 )
=	-0.284	/	( ( 0.161	+	0.115 )	/	2 )
=	-0.284	/	0.138
=	-205.80 %

where Working Capital is:

	Working Capital		(Q: Dec. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.233	+	0	+	0.066)	-	(1.373	+	0.093	+	0.085)
=	-1.252

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0.03)	-	(1.125	+	0	+	0)
=	-1.095

When net working capital is negative, 0 is used.

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

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

Financial Gravity's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	-0.071	/	1.684
	=	-4.22 %

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.

Financial Gravity Operating Income Related Terms

Thank you for viewing the detailed overview of Financial Gravity's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Financial Gravity (Financial Gravity) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Financial Gravity Companies Inc (OTCPK:FGCO) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

2501 Ranch Road 620 South, Suite 110, Lakeway, TX, USA, 78734

Website

https://www.financialgravity.com

Financial Gravity Companies Inc through its subsidiaries helps investment advisors and tax professionals expand their businesses by adding additional services, including their own multi-family office. Financial services professionals are able to leverage Financial Gravity systems, technology, proprietary resources, and deep domain expertise to provide a comprehensive financial service experience to their clients that spans proactive tax planning, retirement and estate planning, wealth management, and risk mitigation. The company's operating segments include FGCO; Forta; FGAM; FGFOS; FGIS; FGEM; and TMN.

Executives

Mark John Williams	director	26420 VIA MALLORCA, CARMEL CA 93923
William Robert Nelson	director	2501 RANCH ROAD 620 SOUTH, SUITE 110, LAKEWAY TX 78734
Gary Joel Nemer	director	800 N. WATTERS ROAD, SUITE 150, ALLEN TX 75013
Jennifer Winters	director	2501 RANCH ROAD 620 SOUTH, SUITE 110, LAKEWAY TX 78734
Scott Christopher Winters	director, officer: CEO, Co-Chairman of the Board	800 N. WATTERS ROAD, SUITE 150, ALLEN TX 75013
Paul O Williams	director, officer: Chief Financial Officer	800 N. WATTERS ROAD. SUITE 120, ALLEN TX 75013
Debra Lynn Buckner	officer: Chief Operating Officer	8505 S. COUNTRY CLUB DRIVE, OKLAHOMA CITY OK 73159
David W. Myers	director	800 N. WATTERS ROAD, SUITE 150, ALLEN TX 75013
Todd Bourgeois	director	800 N. WATTERS ROAD, SUITE 150, ALLEN TX 75013
Michael Lin Ashby	director	800 N. WATTERS RD., SUITE 150, ALLEN TX 75013
John David Pollock	director, 10 percent owner, officer: CEO	800 N. WATTERS ROAD, SUITE 120, ALLEN TX 75013
Ricky J Johnson	officer: Chief Operating Officer	800 N. WATTERS ROAD, SUITE 120, ALLEN TX 75013
George E Crumley	director	800 N. WATTERS ROAD, SUITE 120, ALLEN TX 75013
James F. Reggio	officer: CTO and Chief Mktg Officer	3607 POLO RUN DR., FLOWER MOUND TX 75028
Arthur David Crowley	director, officer: Pres. and Ch. Strategy Officer	800 N. WATTERS ROAD, SUITE 120, ALLEN TX 75013