Novelion Therapeutics (Novelion Therapeutics) Operating Income : $-42.4 Mil (TTM As of Mar. 2019)

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What is Novelion Therapeutics Operating Income?

Novelion Therapeutics's Operating Income for the three months ended in Mar. 2019 was $-16.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2019 was $-42.4 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Novelion Therapeutics's Operating Income for the three months ended in Mar. 2019 was $-16.0 Mil. Novelion Therapeutics's Revenue for the three months ended in Mar. 2019 was $32.2 Mil. Therefore, Novelion Therapeutics's Operating Margin % for the quarter that ended in Mar. 2019 was -49.65%.

Novelion Therapeutics'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. Novelion Therapeutics's annualized ROC % for the quarter that ended in Mar. 2019 was -10.27%. Novelion Therapeutics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2019 was -4,577.81%.

Novelion Therapeutics Operating Income Historical Data

The historical data trend for Novelion Therapeutics'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.

Novelion Therapeutics Operating Income Chart

Novelion Therapeutics Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Operating Income

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-31.49

-26.01

-36.71

-84.26

-47.92

Novelion Therapeutics Quarterly Data
	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19
Operating Income	Get a 7-Day Free Trial															-21.48	-17.89	-9.58	1.03	-15.99

Novelion Therapeutics 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 Mar. 2019 adds up the quarterly data reported by the company within the most recent 12 months, which was $-42.4 Mil.

Novelion Therapeutics (OTCPK:NVLNF) Operating Income Explanation

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

Novelion Therapeutics's annualized ROC % for the quarter that ended in Mar. 2019 is calculated as:

	ROC % (Q: Mar. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2018 )	+	Invested Capital (Q: Mar. 2019 ))	/ count )
=	-63.952 * ( 1 - 0.66% )	/	( (601.519	+	635.322)	/ 2 )
=	-63.5299168	/	618.4205
=	-10.27 %

where

	Invested Capital		(Q: Dec. 2018 )
=	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	))
=	341.715	-	48.041	-	( 45.154	-	max(0, 410.388	-	102.543	+	45.154	))
=	601.519

	Invested Capital		(Q: Mar. 2019 )
=	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	))
=	342.12	-	44.038	-	( 51.919	-	max(0, 443.459	-	106.219	+	51.919	))
=	635.322

Note: The Operating Income data used here is four times the quarterly (Mar. 2019) data.

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

Novelion Therapeutics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2019 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2019 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2018		Q: Mar. 2019
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-63.952	/	( ( (1.585 + max(-4.507, 0))	+	(1.209 + max(-29.706, 0)) )	/	2 )
=	-63.952	/	( ( 1.585	+	1.209 )	/	2 )
=	-63.952	/	1.397
=	-4,577.81 %

where Working Capital is:

	Working Capital		(Q: Dec. 2018 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(28.912	+	12.745	+	15.732)	-	(48.041	+	0	+	13.855)
=	-4.507

	Working Capital		(Q: Mar. 2019 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(26.875	+	13.407	+	14.018)	-	(44.038	+	24.167	+	15.801)
=	-29.706

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2019) EBIT data.

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

Novelion Therapeutics's Operating Margin % for the quarter that ended in Mar. 2019 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2019 )	/	Revenue (Q: Mar. 2019 )
	=	-15.988	/	32.2
	=	-49.65 %

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.

Novelion Therapeutics Operating Income Related Terms

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

Novelion Therapeutics (Novelion Therapeutics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Novelion Therapeutics Inc (OTCPK:NVLNF) » Definitions » Operating Income

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Traded in Other Exchanges

N/A

Address

c/o Norton Rose Fulbright, 1800 West Georgia Street, Suite 510, Vancouver, BC, CAN, V6B 0M3

Website

http://www.novelion.com

Headquartered in Vancouver, Canada, QLT is a biotechnology company that researches and develops products used to treat conditions of the eye. After a recent board change, QLT divested its only marketed product, a laser treatment called Visudyne for the treatment of wet age-related macular degeneration and subfoveal choroidal neovascularization. QLT also earns royalty payments on other certain previously divested products. Following recent pipeline changes, the company currently has one product in development for two rare eye conditions.

Executives

Kevin Kotler	10 percent owner	C/O BROADFIN CAPITAL, LLC, 300 PARK AVENUE, 25TH FLOOR, NEW YORK NY 10022
Broadfin Capital, Llc	10 percent owner	300 PARK AVENUE, 25TH FLOOR, NEW YORK NY 10022
Broadfin Healthcare Master Fund Ltd	10 percent owner	C/O 20 GENESIS CLOSE, ANSBACHER HOUSE, 2ND FLOOR, PO BOX 1344, GRAND CAYMAN E9 KY1-1108
Stonepine Capital, L.p.	10 percent owner	919 NW BOND STREET, SUITE 204, BEND OR 97703
Michael Dennis Price	officer: Chief Financial Officer
Benjamin Harshbarger	officer: See Remarks	ONE MAIN STREET, SUITE 800, CAMBRIDGE MA 02142
Mark Dipaolo	director	660 STEAMBOAT ROAD, 3RD FLOOR, GREENWICH CT 06830
John J Orloff	director	C/O BAXALTA INCORPORATED 1200 LAKESIDE DRIVE BANNOCKBURN IL 60015
Stephen L Sabba	director	DORSET MANAGEMENT CORP, 485 UNDERHILL BLVD SUITE 205, SYOSSET NY 11791
Mark Corrigan	director
Suzanne Louise Bruhn	director	C/O AEGLEA BIOTHERAPEUTICS, INC., 901 S. MOPAC EXPRESSWAY, SUITE 250, AUSTIN TX 78746
John C Thomas	director	8601 SIX FORKS ROAD, SUITE 160, RALEIGH NC 27615
Murray Stewart	officer: Executive Vice President, R&D	C/O NOVELION THERAPEUTICS INC., 1800-510 WEST GEORGIA STREET, VANCOUVER A1 V6B OM3
Jason Aryeh	director	11119 NORTH TORREY PINES ROAD, SUITE 200, LA JOLLA CA 92037
Mary T Szela	director, officer: Chief Executive Officer	10835 ROAD TO THE CURE, SUITE 205, SAN DIEGO CA 92121