DARA Biosciences (DARA Biosciences) Operating Income : $-10.21 Mil (TTM As of Sep. 2015)

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What is DARA Biosciences Operating Income?

DARA Biosciences's Operating Income for the three months ended in Sep. 2015 was $-2.70 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2015 was $-10.21 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. DARA Biosciences's Operating Income for the three months ended in Sep. 2015 was $-2.70 Mil. DARA Biosciences's Revenue for the three months ended in Sep. 2015 was $1.18 Mil. Therefore, DARA Biosciences's Operating Margin % for the quarter that ended in Sep. 2015 was -228.45%.

DARA Biosciences'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. DARA Biosciences's annualized ROC % for the quarter that ended in Sep. 2015 was -258.52%. DARA Biosciences's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2015 was -39,243.64%.

DARA Biosciences Operating Income Historical Data

The historical data trend for DARA Biosciences'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.

DARA Biosciences Operating Income Chart

DARA Biosciences Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Operating Income

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-6.49

-6.76

-9.64

-10.49

-9.40

DARA Biosciences Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
Operating Income	Get a 7-Day Free Trial															-2.18	-1.69	-3.13	-2.68	-2.70

DARA Biosciences 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. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $-10.21 Mil.

DARA Biosciences (NAS:DARA) Operating Income Explanation

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

DARA Biosciences's annualized ROC % for the quarter that ended in Sep. 2015 is calculated as:

	ROC % (Q: Sep. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2015 )	+	Invested Capital (Q: Sep. 2015 ))	/ count )
=	-10.792 * ( 1 - 0% )	/	( (4.51	+	3.839)	/ 2 )
=	-10.792	/	4.1745
=	-258.52 %

where

	Invested Capital		(Q: Jun. 2015 )
=	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	))
=	11.877	-	2.227	-	( 7.005	-	max(0, 3.105	-	8.245	+	7.005	))
=	4.51

	Invested Capital		(Q: Sep. 2015 )
=	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	))
=	9.683	-	3.059	-	( 4.659	-	max(0, 3.44	-	6.225	+	4.659	))
=	3.839

Note: The Operating Income data used here is four times the quarterly (Sep. 2015) data.

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

DARA Biosciences's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2015 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2015 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2015		Q: Sep. 2015
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-10.792	/	( ( (0.029 + max(-1.857, 0))	+	(0.026 + max(-1.866, 0)) )	/	2 )
=	-10.792	/	( ( 0.029	+	0.026 )	/	2 )
=	-10.792	/	0.0275
=	-39,243.64 %

where Working Capital is:

	Working Capital		(Q: Jun. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.766	+	0.176	+	0.298)	-	(2.227	+	0.266	+	0.604)
=	-1.857

	Working Capital		(Q: Sep. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.151	+	0.267	+	0.148)	-	(3.059	+	0.32	+	0.053)
=	-1.866

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2015) EBIT data.

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

DARA Biosciences's Operating Margin % for the quarter that ended in Sep. 2015 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2015 )	/	Revenue (Q: Sep. 2015 )
	=	-2.698	/	1.181
	=	-228.45 %

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.

DARA Biosciences Operating Income Related Terms

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

DARA Biosciences (DARA Biosciences) Business Description

Industry

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

Comparable Companies

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Address

Website

http://www.darabio.com

DARA Biosciences Inc was incorporated on June 22, 2002. It is a specialty pharmaceutical company focused on the development and commercialization of oncology treatment and supportive care pharmaceutical products. Through its acquisition of Oncogenerix, Inc., which occurred on January 17, 2012, the Company acquired exclusive U.S. marketing rights to its first commercial proprietary product, Soltamox (oral liquid tamoxifen). The Company's main focus is on the development and commercialization of oncology treatment and supportive care pharmaceutical products: Soltamox, Gemcitabine and other generic sterile injectable cytotoxic products, and Cancer support therapeutics. Soltamox (oral liquid tamoxifen), its first proprietary, FDA approved product, is a drug primarily used to treat breast cancer. Soltamox has been approved by the U.S. Food and Drug Administration ('FDA') for the treatment of breast cancer. Soltamox will be the only liquid formulation of tamoxifen available for sale in the United States. Soltamox is used mainly for the chronic treatment of breast cancer or for cancer prevention in certain susceptible breast cancer subgroups. The Company is also focusing on the development and commercialization of generic sterile injectable cytotoxic products. The Company's agreement with Uman Pharma Inc. pursuant to which it received an exclusive license to import, sell, market and distribute Uman's gemcitabine lyophilized powder product in 200mg and 1g dosage sizes in the U.S. Gemcitabine went off patent in 2011 in the U.S. and is prescribed as first-line therapy for ovarian, breast, lung and pancreatic cancers. Currently, the Company has two main drug candidates advancing through clinical development with cleared Investigational New Drug applications from the FDA: KRN5500, a novel, non-narcotic/non-opioid for the treatment of neuropathic pain in patients with cancer; and DB959, a first-in-class drug candidate for the treatment of type 2 diabetes and dyslipidemia. The Company mainly competes with other pharmaceutical companies, biotechnology companies and other research and academic institutions. The Company's advertising, marketing and distribution of pharmaceutical products in the United States is subject to the regulation of United States Food, Drug and Cosmetic Act.

Executives

David Drutz	director, officer: Executive Chairman and CMO	8601 SIX FORKS ROAD, SUITE 160, RALEIGH NC 27615
David L. Tousley	officer: CFO	14610 PAWNEE LANE, LEAWOOD KS 66224
Gail Lieberman	director	175 EAST 79TH STREET, APT. 4D, NEW YORK NY 10075
Paul John Richardson	director	17 COUNTRY OAKS ROAD, LEBANON NJ 08833
Steve Gorlin	director	150 GULF SHORE DRIVE, UNIT 601, DESTIN FL 32541
Ann A Rosar	officer: Vice President Finance	C/O 801 CAPITOLA DRIVE, DURHAM NC 27713
John C Thomas	director	8601 SIX FORKS ROAD, SUITE 160, RALEIGH NC 27615
Geert Cauwenbergh	director	1 STULTS DRIVE, PLAINSBORO NJ 08536
Kurt M Eichler	director	C/O SPRING BANK PHARMACEUTICALS, INC., STE S-7, MILFORD MA 01757
Hamilton Jordan	director
Stuart C Mcwhorter	director	113 SEABOARD LANE, FRANKLIN TN 37067
Timothy J Barberich	director	40 ELM ST, CONCORD MA 01752
Michael P Duffy	officer: SVP, GC and Secretary	C/O POINT THERAPEUTICS INC, 125 SUMMER STREET SUITE 1840, BOSTON MA 02110
Richard J Benjamin	director	15 WHITE PINE ROAD, NEWTON MA 02464
Larry G Pickering	director	26130 MANDEVILLA DRIVE, BONITA SPRINGS FL 34134

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