Top Shelf Brands Holdings (Top Shelf Brands Holdings) Operating Income : $-0.48 Mil (TTM As of Sep. 2011)

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What is Top Shelf Brands Holdings Operating Income?

Top Shelf Brands Holdings's Operating Income for the three months ended in Sep. 2011 was $-0.34 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2011 was $-0.48 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Top Shelf Brands Holdings's Operating Income for the three months ended in Sep. 2011 was $-0.34 Mil. Top Shelf Brands Holdings's Revenue for the three months ended in Sep. 2011 was $0.38 Mil. Therefore, Top Shelf Brands Holdings's Operating Margin % for the quarter that ended in Sep. 2011 was -89.18%.

Top Shelf Brands Holdings'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. Top Shelf Brands Holdings's annualized ROC % for the quarter that ended in Sep. 2011 was -26.79%. Top Shelf Brands Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2011 was -6,945.45%.

Top Shelf Brands Holdings Operating Income Historical Data

The historical data trend for Top Shelf Brands Holdings'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.

Top Shelf Brands Holdings Operating Income Chart

Top Shelf Brands Holdings Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Operating Income

-0.02

-0.12

-1.29

-1.32

-0.38

Top Shelf Brands Holdings Quarterly Data
	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11
Operating Income	Get a 7-Day Free Trial															-0.17	0.56	-0.25	-0.46	-0.34

Top Shelf Brands Holdings 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. 2011 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.48 Mil.

Top Shelf Brands Holdings (OTCPK:DKTS) Operating Income Explanation

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

Top Shelf Brands Holdings's annualized ROC % for the quarter that ended in Sep. 2011 is calculated as:

	ROC % (Q: Sep. 2011 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2011 )	+	Invested Capital (Q: Sep. 2011 ))	/ count )
=	-1.352 * ( 1 - 0% )	/	( (5.031	+	5.064)	/ 2 )
=	-1.352	/	5.0475
=	-26.79 %

where

	Invested Capital		(Q: Jun. 2011 )
=	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	))
=	3.193	-	0.948	-	( 0.006	-	max(0, 3.053	-	0.267	+	0.006	))
=	5.031

	Invested Capital		(Q: Sep. 2011 )
=	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	))
=	3.047	-	1.145	-	( 0.016	-	max(0, 3.31	-	0.148	+	0.016	))
=	5.064

Note: The Operating Income data used here is four times the quarterly (Sep. 2011) data.

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

Top Shelf Brands Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2011 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2011 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2011		Q: Sep. 2011
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-1.528	/	( ( (0.025 + max(-1.495, 0))	+	(0.019 + max(-1.869, 0)) )	/	2 )
=	-1.528	/	( ( 0.025	+	0.019 )	/	2 )
=	-1.528	/	0.022
=	-6,945.45 %

where Working Capital is:

	Working Capital		(Q: Jun. 2011 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0.261)	-	(0.948	+	0	+	0.808)
=	-1.495

	Working Capital		(Q: Sep. 2011 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0.132)	-	(1.145	+	0	+	0.856)
=	-1.869

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2011) EBIT data.

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

Top Shelf Brands Holdings's Operating Margin % for the quarter that ended in Sep. 2011 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2011 )	/	Revenue (Q: Sep. 2011 )
	=	-0.338	/	0.379
	=	-89.18 %

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.

Top Shelf Brands Holdings Operating Income Related Terms

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Top Shelf Brands Holdings (Top Shelf Brands Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Top Shelf Brands Holdings Corp (OTCPK:DKTS) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

700 Louisiana Street, Bank of America Center, Suite 3950, Houston, TX, USA, 77002

Website

http://www.drinktopshelf.com

Top Shelf Brands Holdings Corp is engaged in the business of developing, importing, marketing and supplying branded alcoholic beverage brands and boutique wines. It specializes in the brand creation and strategic identity marketing for its products.

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