Arras Group SpA (MIL:AGU) Operating Income : € Mil (TTM As of Dec. 2022)

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What is Arras Group SpA Operating Income?

Arras Group SpA's Operating Income for the six months ended in Dec. 2022 was €-0.89 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Arras Group SpA's Operating Income for the six months ended in Dec. 2022 was €-0.89 Mil. Arras Group SpA's Revenue for the six months ended in Dec. 2022 was €0.07 Mil. Therefore, Arras Group SpA's Operating Margin % for the quarter that ended in Dec. 2022 was -1,346.97%.

Arras Group SpA'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. Arras Group SpA's annualized ROC % for the quarter that ended in Dec. 2022 was -31.06%. Arras Group SpA's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2022 was -9,490.00%.

Arras Group SpA Operating Income Historical Data

The historical data trend for Arras Group SpA'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.

Arras Group SpA Operating Income Chart

Arras Group SpA Annual Data

Trend

Dec21

Dec22

Operating Income

-0.14

-0.89

Arras Group SpA Semi-Annual Data
	Dec21	Dec22
Operating Income	-0.14	-0.89

Arras Group SpA 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.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Dec. 2022 was € Mil.

Arras Group SpA (MIL:AGU) Operating Income Explanation

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

Arras Group SpA's annualized ROC % for the quarter that ended in Dec. 2022 is calculated as:

	ROC % (Q: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2021 )	+	Invested Capital (Q: Dec. 2022 ))	/ count )
=	-0.889 * ( 1 - 0% )	/	( (0.679	+	5.045)	/ 2 )
=	-0.889	/	2.862
=	-31.06 %

where

	Invested Capital		(Q: Dec. 2021 )
=	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	))
=	0.757	-	0.124	-	( 0.007	-	max(0, 0.789	-	0.743	+	0.007	))
=	0.679

	Invested Capital		(Q: Dec. 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	))
=	5.02	-	0.322	-	( 0.05	-	max(0, 5.109	-	4.762	+	0.05	))
=	5.045

Note: The Operating Income data used here is one times the annual (Dec. 2022) data.

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

Arras Group SpA's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2022 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2022 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2021		Q: Dec. 2022
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-0.949	/	( ( (0 + max(-0.064, 0))	+	(0.02 + max(-0.58, 0)) )	/	2 )
=	-0.949	/	( ( 0	+	0.02 )	/	2 )
=	-0.949	/	0.01
=	-9,490.00 %

where Working Capital is:

	Working Capital		(Q: Dec. 2021 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.058	+	0.401	+	0.266)	-	(0.124	+	0	+	0.665)
=	-0.064

	Working Capital		(Q: Dec. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.326	+	1.921	+	2.282)	-	(0.322	+	0	+	4.787)
=	-0.58

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Dec. 2022) EBIT data.

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

Arras Group SpA's Operating Margin % for the quarter that ended in Dec. 2022 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2022 )	/	Revenue (Q: Dec. 2022 )
	=	-0.889	/	0.066
	=	-1,346.97 %

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.

Arras Group SpA Operating Income Related Terms

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Arras Group SpA (MIL:AGU) Business Description

Industry

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6ZU:Germany

Address

Largo Domodossola 7, Milan, ITA, 20145

Website

https://www.arrasgroupspa.com

Arras Group SpA is a technological real estate development company for second homes, which currently operates in the Sardinian territory (in particular, in the north and south of the island), and is aimed at both Italian and foreign high-income customers. The Real Estate Projects developed by the Group typically arise in prestigious seaside locations in Sardinia, with the possibility of enjoying large internal and external spaces, as usually requested by national and international buyers interested in buying second homes. Its projects include Cannigione Sunrise, I Villini del Poetto, Seaside Costa Paradiso, The Tower Calasetta, Castle View, and others.