LifeQuest World (LifeQuest World) Operating Income : $-1.09 Mil (TTM As of May. 2009)

View and export this data going back to . Start your Free Trial

What is LifeQuest World Operating Income?

LifeQuest World's Operating Income for the six months ended in May. 2009 was $-1.09 Mil. Its Operating Income for the trailing twelve months (TTM) ended in May. 2009 was $-1.09 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. LifeQuest World's Operating Income for the six months ended in May. 2009 was $-1.09 Mil. LifeQuest World's Revenue for the six months ended in May. 2009 was $0.77 Mil. Therefore, LifeQuest World's Operating Margin % for the quarter that ended in May. 2009 was -141.56%.

LifeQuest World'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. LifeQuest World's annualized ROC % for the quarter that ended in May. 2009 was -27.83%. LifeQuest World's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2009 was -8,720.00%.

LifeQuest World Operating Income Historical Data

The historical data trend for LifeQuest World'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.

LifeQuest World Operating Income Chart

LifeQuest World Annual Data

Trend

May00

May01

May02

May03

May04

May05

May06

May07

May08

May09

Operating Income

Get a 7-Day Free Trial

-0.38

-0.99

-1.42

-1.27

-1.09

LifeQuest World Semi-Annual Data
	May99	May00	May01	May02	May03	May04	May05	May06	May07	May08	May09
Operating Income	Get a 7-Day Free Trial						-0.38	-0.99	-1.42	-1.27	-1.09

LifeQuest World 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.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in May. 2009 was $-1.09 Mil.

LifeQuest World (OTCPK:LQWC) Operating Income Explanation

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

LifeQuest World's annualized ROC % for the quarter that ended in May. 2009 is calculated as:

	ROC % (Q: May. 2009 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: May. 2008 )	+	Invested Capital (Q: May. 2009 ))	/ count )
=	-1.09 * ( 1 - 0% )	/	( (2.401	+	5.433)	/ 2 )
=	-1.09	/	3.917
=	-27.83 %

where

	Invested Capital		(Q: May. 2008 )
=	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	))
=	2.718	-	1.586	-	( 0.016	-	max(0, 1.586	-	0.317	+	0.016	))
=	2.401

	Invested Capital		(Q: May. 2009 )
=	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	))
=	4.333	-	1.247	-	( 0	-	max(0, 2.629	-	0.282	+	0	))
=	5.433

Note: The Operating Income data used here is one times the annual (May. 2009) data.

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

LifeQuest World's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2009 is calculated as:

	ROC (Joel Greenblatt) %		(Q: May. 2009 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: May. 2008		Q: May. 2009
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-1.09	/	( ( (0.006 + max(-1.285, 0))	+	(0.019 + max(-2.316, 0)) )	/	2 )
=	-1.09	/	( ( 0.006	+	0.019 )	/	2 )
=	-1.09	/	0.0125
=	-8,720.00 %

where Working Capital is:

	Working Capital		(Q: May. 2008 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.012	+	0.278	+	0.011)	-	(1.586	+	0	+	0)
=	-1.285

	Working Capital		(Q: May. 2009 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.024	+	0.256	+	0.0019999999999999)	-	(1.247	+	0	+	1.351)
=	-2.316

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (May. 2009) EBIT data.

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

LifeQuest World's Operating Margin % for the quarter that ended in May. 2009 is calculated as:

Operating Margin %	=	Operating Income (Q: May. 2009 )	/	Revenue (Q: May. 2009 )
	=	-1.09	/	0.77
	=	-141.56 %

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.

LifeQuest World Operating Income Related Terms

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

LifeQuest World (LifeQuest World) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » LifeQuest World Corp (OTCPK:LQWC) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

100 Challenger Road, 8th Floor, Ridgefield Park, NJ, USA, 07660

Website

https://www.lifequestcorp.com

LifeQuest World Corp is a technology leader in low-cost, low-maintenance, eco-friendly, decentralized wastewater treatment. It intends to rapidly add solutions for the treatment of effluents. The company markets the following products namely BioPipe; Abrimix water treatment technology is capable of treating industrial wastewater and Goslyn is a patented fat, oil, and grease recovery device used in restaurants, hotels, and industrial kitchens.

Executives

Anthony Carl Jurak	director, 10 percent owner, officer: CEO	297 MARIN ST, SAINTE ADELE QUEBEC A1 J8B2P8
Roger Theriault	director, officer: President	1181 GRIER DR., SUITE C, LAS VEGAS NV 89119
Maria Jose Guedes	officer: V.P. of Operations/Asst. Secy.	1181 GRIER DR., SUITE C, LAS VEGAS NV 89119