00:06
So the residual operating income is one of the key metrics for business valuation.
00:14
And so we can look at the residual operating income as an expression.
00:18
We have r -e -o -i.
00:21
That's equal to sales, multiplied by core sales, pm, subtract required returns for operations divided by ato, add the core other oi, add the unusual items.
00:41
Where r -e -o -i is the residual operating income, ato is the asset turnover ratio, pm is the profit margins, o -i is the operating income.
00:53
And so we use this equation to plug our values in, so r -e -o -i becomes 24 -88 -0 -000 -0 -0 -0 -0 -0 -0, a massive number, multiplied by 0 .2, subtract 0 .09, divided by 1 .32.
01:15
To that we add 1 .02 ,000, 0 ,000, 0000.
01:22
R -e -o -i is therefore 3 -277 -231 -984.
01:30
I have to use in this equation at the top...