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Polar Power (Polar Power) Operating Income : $-6.93 Mil (TTM As of Mar. 2024)


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What is Polar Power Operating Income?

Polar Power's Operating Income for the three months ended in Mar. 2024 was $-1.98 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $-6.93 Mil.

Warning Sign:

Polar Power Inc had lost money in 92% of the time over the past 12quarters.

Operating Margin % is calculated as Operating Income divided by its Revenue. Polar Power's Operating Income for the three months ended in Mar. 2024 was $-1.98 Mil. Polar Power's Revenue for the three months ended in Mar. 2024 was $1.78 Mil. Therefore, Polar Power's Operating Margin % for the quarter that ended in Mar. 2024 was -111.49%.

Warning Sign:

Polar Power Inc operating margin has been in a 5-year decline. The average rate of decline per year is -36.8%.

Polar Power's 5-Year average Growth Rate for Operating Margin % was -36.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Polar Power's annualized ROC % for the quarter that ended in Mar. 2024 was -36.71%. Polar Power's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -47.73%.


Polar Power Operating Income Historical Data

The historical data trend for Polar Power'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.

Polar Power Operating Income Chart

Polar Power Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.98 -12.96 -3.10 -5.53 -5.99

Polar Power Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.04 -0.31 -1.67 -2.97 -1.98

Polar Power 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. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-6.93 Mil.

* 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.


Polar Power  (NAS:POLA) Operating Income Explanation

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

Polar Power's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-7.916 * ( 1 - 0% )/( (21.797 + 21.325)/ 2 )
=-7.916/21.561
=-36.71 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

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

Polar Power's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-7.916/( ( (3.162 + max(14.122, 0)) + (2.808 + max(13.077, 0)) )/ 2 )
=-7.916/( ( 17.284 + 15.885 )/ 2 )
=-7.916/16.5845
=-47.73 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1.676 + 16.522 + 0.455) - (2.913 + 1.618 + 0)
=14.122

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1.282 + 16.221 + 0.444) - (2.325 + 2.545 + 0)
=13.077

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

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

Polar Power's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=-1.979/1.775
=-111.49 %

* 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.

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.


Polar Power Operating Income Related Terms

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Polar Power (Polar Power) Business Description

Traded in Other Exchanges
Address
249 East Gardena Boulevard, Gardena, CA, USA, 90248
Polar Power Inc is engaged in designing, manufacture, and sell DC power generators, renewable energy and cooling systems for applications primarily in the telecommunications market and, to a lesser extent, in other markets, including military, electric vehicle, marine and industrial. The company's products include DC generators, Back-up DC generators, hybrid power systems, Li-Ion battery systems, and Marine DC generators. The Companie's geographical presence is in United States, Canada, Mexico, South Pacific Islands, Japan, Europe and Middle East and Other Asia Pacific countries.
Executives
Keith Albrecht director 249 E. GARDENA BOULEVARD, GARDENA CA 90248
Arthur D. Sams director, 10 percent owner, officer: President, CEO, Secretary 249 E. GARDENA BOULEVARD, GARDENA CA 90248
Rajesh Masina officer: Chief Operating Officer 249 E. GARDENA BOULEVARD, GARDENA CA 90248
Luis Zavala officer: Chief Financial Officer 249 E. GARDENA BOULEVARD, GARDENA CA 90248
Peter Gross director 249 E. GARDENA BLVD., GARDENA CA 90248
Matthew Goldman director 249 E. GARDENA BOULEVARD, GARDENA CA 90248