Sparta Commercial Services (Sparta Commercial Services) Operating Income : $-1.01 Mil (TTM As of Jan. 2024)

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

What is Sparta Commercial Services Operating Income?

Sparta Commercial Services's Operating Income for the three months ended in Jan. 2024 was $-0.25 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $-1.01 Mil.

Warning Sign:

Sparta Commercial Services 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. Sparta Commercial Services's Operating Income for the three months ended in Jan. 2024 was $-0.25 Mil. Sparta Commercial Services's Revenue for the three months ended in Jan. 2024 was $0.04 Mil. Therefore, Sparta Commercial Services's Operating Margin % for the quarter that ended in Jan. 2024 was -662.16%.

Warning Sign:

Sparta Commercial Services Inc operating margin has been in a 5-year decline. The average rate of decline per year is -30.4%.

Sparta Commercial Services's 5-Year average Growth Rate for Operating Margin % was -30.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Sparta Commercial Services's annualized ROC % for the quarter that ended in Jan. 2024 was -11.81%. Sparta Commercial Services's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was %.

Sparta Commercial Services Operating Income Historical Data

The historical data trend for Sparta Commercial Services'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.

Sparta Commercial Services Operating Income Chart

Sparta Commercial Services Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Operating Income

Get a 7-Day Free Trial

-0.85

-0.79

-1.19

-1.67

-1.39

Sparta Commercial Services Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Operating Income	Get a 7-Day Free Trial															-0.35	-0.27	-0.24	-0.27	-0.25

Sparta Commercial Services 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 $-1.01 Mil.

Sparta Commercial Services (OTCPK:SRCO) Operating Income Explanation

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

Sparta Commercial Services'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 )
=	-0.98 * ( 1 - 0% )	/	( (8.379	+	8.216)	/ 2 )
=	-0.98	/	8.2975
=	-11.81 %

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	))
=	0.016	-	1.554	-	( 0.005	-	max(0, 9.924	-	0.007	+	0.005	))
=	8.379

	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	))
=	0.021	-	1.587	-	( 0.005	-	max(0, 9.794	-	0.012	+	0.005	))
=	8.216

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

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

Sparta Commercial Services'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 )
=	0.02	/	( ( (0 + max(-2.751, 0))	+	(0 + max(-2.624, 0)) )	/	2 )
=	0.02	/	( ( 0	+	0 )	/	2 )
=	0.02	/	0
=	%

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)
=	(0.001	+	0.002	+	-0.001)	-	(1.554	+	0	+	1.199)
=	-2.751

	Working Capital		(Q: Jan. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.003	+	0.004	+	0)	-	(1.587	+	0	+	1.044)
=	-2.624

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 %:

Sparta Commercial Services'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 )
	=	-0.245	/	0.037
	=	-662.16 %

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.

Sparta Commercial Services Operating Income Related Terms

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

Sparta Commercial Services (Sparta Commercial Services) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Sparta Commercial Services Inc (OTCPK:SRCO) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

555 Fifth Avenue, 14th Floor, New York, NY, USA, 10017

Website

https://www.spartacommercial.com

Sparta Commercial Services Inc through its subsidiaries offers technology products and services. The company develops, manages, and markets its business mobile applications for smartphones and tablets. Its mobile application offerings range from racetracks, private clubs, country clubs, restaurants, and grocery stores. The company serves small and medium-size businesses under the tradename iMobileApp. It generates maximum revenue from the application source.

Executives

Jeffrey Buchanan Bean	director	325 COTTON AVENUE, MACON GA 31201
Anthony L Havens	director, officer: CEO	555 FIFTH AVE., 14TH FLOOR, NEW YORK NY 10017
Sandra L Ahman	director, officer: VP	555 FIFTH AVE, 14TH FLOOR, NEW YORK NY 10017
Kristian Srb	director, 10 percent owner	555 FIFTH AVE., 14TH FLOOR, NEW YORK NY 10017
Richard P Trotter	officer: COO	370 LEXINGTON AVE., SUITE 1901, NEW YORK NY 10017
Anthony William Adler	officer: EVP	462 SEVENTH AVENUE, 20TH FLOOR, NEW YORK NY 10018
Leo Long	other: 8.85% OWNER	9109 LORIET BLVD., LENEXA KS 66219
Glenn Little	other: 5% Owner	211 WEST WALL ST, MIDLAND TX 70701
Michael J Mele	officer: Chief Financial Officer	462 SEVENTH AVE, 20TH FL., C/O SPARTA COMMERCIAL SERVICES, INC., NEW YORK NY 10018
Danny Lanjewar	officer: Chief Financial Officer