GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Skillsoft Corp (NYSE:SKIL) » Definitions » Operating Income

Skillsoft (Skillsoft) Operating Income : $-87.3 Mil (TTM As of Jan. 2024)


View and export this data going back to 2019. Start your Free Trial

What is Skillsoft Operating Income?

Skillsoft's Operating Income for the three months ended in Jan. 2024 was $-18.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $-87.3 Mil.

Warning Sign:

Skillsoft Corp had lost money in 83% of the time over the past 12quarters.

Operating Margin % is calculated as Operating Income divided by its Revenue. Skillsoft's Operating Income for the three months ended in Jan. 2024 was $-18.2 Mil. Skillsoft's Revenue for the three months ended in Jan. 2024 was $137.5 Mil. Therefore, Skillsoft's Operating Margin % for the quarter that ended in Jan. 2024 was -13.25%.

Skillsoft'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. Skillsoft's annualized ROC % for the quarter that ended in Jan. 2024 was -5.32%. Skillsoft's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was -6,081.85%.


Skillsoft Operating Income Historical Data

The historical data trend for Skillsoft'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.

Skillsoft Operating Income Chart

Skillsoft Annual Data
Trend Dec19 Jan20 Jan23 Jan24
Operating Income
- 55.53 -119.80 -87.34

Skillsoft Quarterly Data
Apr19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jul21 Oct21 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 -33.39 -28.77 -21.86 -18.49 -18.22

Skillsoft 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 $-87.3 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.


Skillsoft  (NYSE:SKIL) Operating Income Explanation

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

Skillsoft'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 )
=-72.876 * ( 1 - 2.98% )/( (1401.931 + 1257.08)/ 2 )
=-70.7042952/1329.5055
=-5.32 %

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))
=1424.971 - 43.544 - ( 129.806 - max(0, 320.601 - 300.097+129.806))
=1401.931

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))
=1273.634 - 44.451 - ( 136.308 - max(0, 413.228 - 385.331+136.308))
=1257.08

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

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

Skillsoft'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 )
=-944.816/( ( (16.387 + max(-99.829, 0)) + (14.683 + max(-112.022, 0)) )/ 2 )
=-944.816/( ( 16.387 + 14.683 )/ 2 )
=-944.816/15.535
=-6,081.85 %

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)
=(110.833 + 0 + 59.458) - (43.544 + 203.588 + 22.988)
=-99.829

Working Capital(Q: Jan. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(185.638 + 0 + 61.135) - (44.451 + 282.57 + 31.774)
=-112.022

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 %:

Skillsoft'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 )
=-18.219/137.54
=-13.25 %

* 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.


Skillsoft Operating Income Related Terms

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


Skillsoft (Skillsoft) Business Description

Traded in Other Exchanges
Address
300 Innovative Way, Suite 201, Nashua, NH, USA, 03062
Skillsoft Corp is a leader in corporate digital learning. The company's segment includes Skillsoft content and Global Knowledge. The Skillsoft business engages in the sale, marketing, and delivery of its content learning solutions, in areas such as Leadership and Business, Technology and Developer and Compliance. Its Global Knowledge business offers training solutions covering information technology and business skills for corporations and their employees.
Executives
Jeffrey R Tarr director, officer: Chief Executive Officer DIGITALGLOBE, INC., 1300 WEST 120TH AVENUE, WESTMINSTER CO 80234
Peter Schmitt director 640 FIFTH AVENUE, 12TH FLOOR, NEW YORK NY 10019
Matthew Glitzer officer: CHIEF REVENUE OFFICER 300 INNOVATIVE WAY, SUITE 201, NASHUA NH 03062
Lawrence Charles Illg director SYMPHONY OFFICES, GUSTAV MAHLERPLEIN 5, AMSTERDAM P7 1082 MS
Jose Torres officer: Chief Accounting Officer 1300 W. 120TH AVENUE, WESTMINSTER CO 80234
Richard Walker officer: Chief Strategy & Corp Dev Ofc C/O SERVICESOURCE INTERNATIONAL, INC., 717 17TH STREET, 5TH FLOOR, DENVER CO 80202
Patrick Kolek director SYMPHONY OFFICES, GUSTAV MAHLERPLEIN 5, AMSTERDAM P7 1082 MS
Ciara Harrington officer: Interim Chief People Officer C/O SKILLSOFT CORP., 300 INNOVATION WAY, SUITE 201, NASHUA NH 03062-5746
Gary W Ferrera officer: Chief Financial Officer 3250 BRIARPARK, SUITE 400, HOUSTON TX 77042
Kristi Hummel officer: Chief People Officer 300 INNOVATIVE WAY, SUITE 201, NASHUA NH 03062
Zachary Sims officer: GM Tech & Dev, CEO Codecademy 575 BROADWAY, 5TH FLOOR, NEW YORK NY 10012
Mih Learning B.v. director, 10 percent owner SYMPHONY OFFICES, GUSTAV MAHLERPLEIN 5, AMSTERDAM P7 1082 MS
Naspers Ltd director, 10 percent owner NASPERS CENTRE PO BOX 2271, CAPETOWN 8000, SOUTH AFRICA T3 00000
N.v. Prosus director, 10 percent owner SYMPHONY OFFICES, GUSTAV MAHLERPLEIN 5, AMSTERDAM P7 1082 MS
Ryan H Murray officer: Interim CFO, CAO SKILLSOFT CORP, 300 INNOVATIVE WAY #201, NASHUA NH 03062