Rent the Runway (Rent the Runway) Operating Income : $-76.9 Mil (TTM As of Jan. 2024)

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What is Rent the Runway Operating Income?

Rent the Runway's Operating Income for the three months ended in Jan. 2024 was $-16.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $-76.9 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Rent the Runway's Operating Income for the three months ended in Jan. 2024 was $-16.2 Mil. Rent the Runway's Revenue for the three months ended in Jan. 2024 was $75.8 Mil. Therefore, Rent the Runway's Operating Margin % for the quarter that ended in Jan. 2024 was -21.37%.

Rent the Runway'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. Rent the Runway's annualized ROC % for the quarter that ended in Jan. 2024 was -32.32%. Rent the Runway's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was -38.85%.

Rent the Runway Operating Income Historical Data

The historical data trend for Rent the Runway'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.

Rent the Runway Operating Income Chart

Rent the Runway Annual Data

Trend

Jan20

Jan21

Jan22

Jan23

Jan24

Operating Income

-130.00

-130.50

-125.90

-95.90

-76.90

Rent the Runway Quarterly Data
	Jan20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Operating Income	Get a 7-Day Free Trial											-15.90	-21.30	-17.50	-21.90	-16.20

Rent the Runway 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 Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-76.9 Mil.

Rent the Runway (NAS:RENT) Operating Income Explanation

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

Rent the Runway's annualized ROC % for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	-64.8 * ( 1 - -2.06% )	/	( (210.7	+	198.6)	/ 2 )
=	-66.13488	/	204.65
=	-32.32 %

where

	Invested Capital		(Q: Oct. 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	))
=	310.3	-	43.8	-	( 105.9	-	max(0, 65.5	-	121.3	+	105.9	))
=	210.7

	Invested Capital		(Q: Jan. 2024 )
=	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	))
=	278.5	-	25.8	-	( 84	-	max(0, 48.1	-	102.2	+	84	))
=	198.6

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

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

Rent the Runway's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jan. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Oct. 2023		Q: Jan. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-66	/	( ( (176.2 + max(-47, 0))	+	(163.6 + max(-25.3, 0)) )	/	2 )
=	-66	/	( ( 176.2	+	163.6 )	/	2 )
=	-66	/	169.9
=	-38.85 %

where Working Capital is:

	Working Capital		(Q: Oct. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	15.4)	-	(43.8	+	11.8	+	6.8)
=	-47

	Working Capital		(Q: Jan. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	18.2)	-	(25.8	+	10.9	+	6.8)
=	-25.3

When net working capital is negative, 0 is used.

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

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

Rent the Runway's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	-16.2	/	75.8
	=	-21.37 %

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.

Rent the Runway Operating Income Related Terms

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

Rent the Runway (Rent the Runway) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Rent the Runway Inc (NAS:RENT) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

10 Jay Street, Brooklyn, NY, USA, 11201

Website

https://www.renttherunway.com

Rent the Runway Inc is an e-commerce platform that allows users to rent, subscribe, or buy designer apparel and accessories.

Executives

Jennifer Hyman	director, 10 percent owner, officer: Chief Executive Officer	767 FIFTH AVENUE, C/O THE ESTEE LAUDER COMPANIES INC., NEW YORK NY 10153
Cara Schembri	officer: GC & Secretary	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Brian Donato	officer: Chief Supply Chain Officer	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Siddharth Thacker	officer: Chief Financial Officer	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Andrew Rau	officer: SVP, Supply Chain & Inventory	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Sarah K Tam	officer: Chief Merchant Officer	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Anushka Salinas	officer: President & COO	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Becky Case	officer: SVP, Engineering	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Larry Steinberg	officer: Chief Technology Officer	1000 WINDWARD CONCOURSE, SUITE 250, ALPHARETTA GA 30005
Emil Michael	director	C/O DPCM CAPITAL, INC., 382 NE 191 STREET, # 24148, MIAMI FL 33179
Scarlett O'sullivan	officer: Chief Financial Officer	225 WEST WASHINGTON STREET, INDIANAPOLIS IN 46204
Andrea Alexander	officer: Chief People Officer	C/O RENT THE RUNWAY, INC., 10 JAY STREET, BROOKLYN NY 11201
Carley Roney	director	C/O XO GROUP INC., 195 BROADWAY, 25TH FLOOR, NEW YORK NY 10007
Beth J Kaplan	director	1716 LOCUST STREET, DES MOINES IA 50309
Timothy E Bixby	director	C/O SHUTTERSTOCK, 350 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10118