AVEO Pharmaceuticals (AVEO Pharmaceuticals) Operating Income : $-24.49 Mil (TTM As of Sep. 2022)

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What is AVEO Pharmaceuticals Operating Income?

AVEO Pharmaceuticals's Operating Income for the three months ended in Sep. 2022 was $-2.17 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2022 was $-24.49 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. AVEO Pharmaceuticals's Operating Income for the three months ended in Sep. 2022 was $-2.17 Mil. AVEO Pharmaceuticals's Revenue for the three months ended in Sep. 2022 was $30.45 Mil. Therefore, AVEO Pharmaceuticals's Operating Margin % for the quarter that ended in Sep. 2022 was -7.12%.

Good Sign:

AVEO Pharmaceuticals Inc operating margin is expanding. Margin expansion is usually a good sign.

AVEO Pharmaceuticals's 5-Year average Growth Rate for Operating Margin % was 36.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. AVEO Pharmaceuticals's annualized ROC % for the quarter that ended in Sep. 2022 was -62.68%. AVEO Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2022 was -2,990.34%.

AVEO Pharmaceuticals Operating Income Historical Data

The historical data trend for AVEO Pharmaceuticals'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.

AVEO Pharmaceuticals Operating Income Chart

AVEO Pharmaceuticals Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Operating Income

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-26.74

-26.02

-0.37

-38.88

-49.55

AVEO Pharmaceuticals Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
Operating Income	Get a 7-Day Free Trial															-9.22	-6.16	-9.01	-7.15	-2.17

AVEO Pharmaceuticals 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 Sep. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $-24.49 Mil.

AVEO Pharmaceuticals (NAS:AVEO) Operating Income Explanation

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

AVEO Pharmaceuticals's annualized ROC % for the quarter that ended in Sep. 2022 is calculated as:

	ROC % (Q: Sep. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Sep. 2022 ))	/ count )
=	-8.672 * ( 1 - 0% )	/	( (9.947	+	17.725)	/ 2 )
=	-8.672	/	13.836
=	-62.68 %

where

	Invested Capital		(Q: Jun. 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	))
=	98.111	-	22.073	-	( 77.16	-	max(0, 31.497	-	97.588	+	77.16	))
=	9.947

	Invested Capital		(Q: Sep. 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	))
=	101.233	-	25.2	-	( 77.398	-	max(0, 42.423	-	100.731	+	77.398	))
=	17.725

Note: The Operating Income data used here is four times the quarterly (Sep. 2022) data.

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

AVEO Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2022 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2022 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2022		Q: Sep. 2022
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-8.672	/	( ( (0.323 + max(-6.732, 0))	+	(0.257 + max(-8.642, 0)) )	/	2 )
=	-8.672	/	( ( 0.323	+	0.257 )	/	2 )
=	-8.672	/	0.29
=	-2,990.34 %

where Working Capital is:

	Working Capital		(Q: Jun. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(15.279	+	1.32	+	2.979)	-	(22.073	+	0	+	4.237)
=	-6.732

	Working Capital		(Q: Sep. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(18.717	+	1.106	+	2.463)	-	(25.2	+	0	+	5.728)
=	-8.642

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2022) EBIT data.

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

AVEO Pharmaceuticals's Operating Margin % for the quarter that ended in Sep. 2022 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2022 )	/	Revenue (Q: Sep. 2022 )
	=	-2.168	/	30.449
	=	-7.12 %

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.

AVEO Pharmaceuticals Operating Income Related Terms

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

AVEO Pharmaceuticals (AVEO Pharmaceuticals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » AVEO Pharmaceuticals Inc (NAS:AVEO) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

30 Winter Street, Boston, MA, USA, 02108

Website

https://www.aveooncology.com

AVEO Pharmaceuticals Inc is a commercial-stage, oncology-focused biopharmaceutical company engaged in offering medicines that provide a better life for patients with cancer. The company markets FOTIVDA (tivozanib) in the United States. FOTIVDA is an oral, next-generation vascular endothelial growth factor receptor, or VEGFR, tyrosine kinase inhibitor, or TKI. The group primarily operates in the U.S.

Executives

Jebediah Ledell	officer: Chief Operating Officer	C/O AVEO PHARMACEUTICALS, INC., 30 WINTER STREET, BOSTON MA 02108
Michael P Bailey	director, officer: President & CEO	IMCLONE SYSTEMS INCORPORATED, 180 VARICK STREET, 6TH FLOOR, NEW YORK NY 10014
Michael Ferraresso	officer: Chief Commercial Officer	AVEO PHARMACEUTICALS, INC., 30 WINTER STREET, BOSTON MA 02108
Kevin Joseph Cullen	director	AVEO PHARMACEUTICALS, INC., 30 WINTER STREET, BOSTON MA 02108
Epperly Corinne	director	AVEO PHARMACEUTICALS, INC., 30 WINTER STREET, BOSTON MA 02108
Peter W. Sonsini	10 percent owner	2855 SAND HILL ROAD, MENLO PARK CA 94025
Florence Anthony A. Jr.	10 percent owner	5425 WISCONSIN AVENUE, SUITE 800, CHEVY CHASE MD 20815
Forest Baskett	10 percent owner
Joshua Makower	10 percent owner	1212 TERRA BELLA AVENUE, MOUNTAIN VIEW CA 94043
Scott D Sandell	10 percent owner
Growth Equity Opportunities Iv, Llc	10 percent owner	1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
Mohamad Makhzoumi	10 percent owner	2855 SAND HILL ROAD, MENLO PARK CA 94025
Erick Lucera	officer: Chief Financial Officer	138 THISTLE ROAD, NORTH ANDOVER MA 08145
Scarlett Spring	director	AVEO PHARMACEUTICALS, INC., ONE BROADWAY, 14TH FLOOR, CAMBRIDGE MA 02142
Peter J Barris	10 percent owner	1119 ST PAUL STREET, BALTIMORE MD 21202