Brocade Communications Systems, Inc. (BRCD) Margin Analysis

Brocade Communications Systems, Inc.

BRCD (NASDAQ)

(%)

Models
Brocade Communications Systems, Inc. Margin Analysis

# --- Years and Quarters
assumptions.set({
    "timeseries": "annual",
    "data": {
        "#years": """
            4
        """,
        "#quarters": """
            8
        """,
    },
    "titles": {
        "#years": "Years",
        "#quarters": "Quarters",
    },
    "properties": {
        "width": "responsive",
        "title": "Years and Quarters",
        "id": "component-1",
        "bindTo": None
    },
    "descriptions": {
        "#years": r"""
The number of historical years used to render the annual chart and tables.
        """,
        "#quarters": r"""
The number of historical quarters used to render the quarterly chart and tables.
        """,
    }
})

# Render description block
model.render_description({
    "data": r"""
## Margin Analysis Report

Margins refer to the ratio between a financial report item and the revenue (example: Net Income Margin = Net Income / Revenue).

This analysis provides annual and quarterly sections for reporting key financial margins.
""",
    "properties": {
        "width": "responsive"
    }
})

# Render description block
model.render_description({
    "data": r"""
## Annual Section

The annual section uses annual data to calculate margins and growth rates.
""",
    "properties": {
        "width": "full"
    }
})

# --- Income Statement Margins
data.compute({
    "user:%revenueGrowthRate": """
        ( income:revenue / income:revenue:-1 ) - 1
    """,
    "user:%grossMargin": """
        income:grossProfit / income:revenue
    """,
    "user:%operatingMargin": """
        income:operatingIncome / income:revenue
    """,
    "user:%netMargin": """
        income:netIncome / income:revenue
    """,
}, forecast=0, timeseries="annual")

model.render_table({
    "timeseries": "annual",
    "data": {
        "income:revenue": "Revenue",
        "user:%revenueGrowthRate": "Revenue Growth Rate",
        "income:costOfRevenue": "Cost of Revenue",
        "income:grossProfit": "Gross Profit",
        "user:%grossMargin": "Gross Margin",
        "income:operatingIncome": "Operating Income",
        "user:%operatingMargin": "Operating Margin",
        "income:netIncome": "Net Income",
        "user:%netMargin": "Net Margin",
    },
    "start": data.get("""
        -assumption:#years
    """),
    "end": 0,
    "properties": {
        "title": "Income Statement Margins",
        "order": "descending",
        "number_format": "M",
        "include_ltm": True,
        "display_averages": False,
        "width": "responsive"
    }
})

# --- Cash Flow Statement Margins
data.compute({
    "user:%cashFromOperatingActivitiesMargin": """
        flow:netCashProvidedByOperatingActivities / income:revenue
    """,
    "user:%freeCashFlowMargin": """
        flow:freeCashFlow / income:revenue
    """,
    "user:%depreciationAndAmortizationMargin": """
        flow:depreciationAndAmortization / income:revenue
    """,
    "user:%capitalExpenditureMargin": """
        flow:capitalExpenditure / income:revenue
    """,
}, forecast=0, timeseries="annual")

model.render_table({
    "timeseries": "annual",
    "data": {
        "income:revenue": "Revenue",
        "flow:netCashProvidedByOperatingActivities": "Cash from Operating Activities",
        "user:%cashFromOperatingActivitiesMargin": "Cash from Operating Activities Margin",
        "flow:freeCashFlow": "Free Cash Flow",
        "user:%freeCashFlowMargin": "Free Cash Flow Margin",
        "flow:depreciationAndAmortization": "Depreciation and Amortization",
        "user:%depreciationAndAmortizationMargin": "Depreciation and Amortization Margin",
        "flow:capitalExpenditure": "Capital Expenditure",
        "user:%capitalExpenditureMargin": "Capital Expenditure Margin",
    },
    "start": data.get("""
        -assumption:#years
    """),
    "end": 0,
    "properties": {
        "title": "Cash Flow Statement Margins",
        "order": "descending",
        "number_format": "M",
        "include_ltm": True,
        "display_averages": False,
        "width": "responsive"
    }
})

model.render_chart({
    "timeseries": "annual",
    "data": {
        "user:%grossMargin": "Gross Margin",
        "user:%operatingMargin": "Operating Margin",
        "user:%netMargin": "Net Margin",
        "user:%freeCashFlowMargin": "Free Cash Flow Margin",
    },
    "start": data.get("""
        -assumption:#years
    """),
    "end": 0,
    "properties": {
        "title": "Annual Chart",
        "include_ltm": False,
        "set_editable": [],
        "hidden_keys": [],
        "bar_keys": ["user:%grossMargin", "user:%operatingMargin", "user:%netMargin", "user:%freeCashFlowMargin"],
        "width": "full"
    }
})

# Render description block
model.render_description({
    "data": r"""
## Quarterly Section

The quarterly section uses quarterly data to calculate margins and growth rates.
""",
    "properties": {
        "width": "full"
    }
})

model.render_table({
    "timeseries": "quarterly",
    "data": {
        "income:revenue": "Revenue",
        "user:%revenueGrowthRate": "Revenue Growth Rate",
        "income:costOfRevenue": "Cost of Revenue",
        "income:grossProfit": "Gross Profit",
        "user:%grossMargin": "Gross Margin",
        "income:operatingIncome": "Operating Income",
        "user:%operatingMargin": "Operating Margin",
        "income:netIncome": "Net Income",
        "user:%netMargin": "Net Margin",
    },
    "start": data.get("""
        -assumption:#quarters
    """),
    "end": 0,
    "properties": {
        "title": "Income Statement Margins",
        "order": "descending",
        "number_format": "M",
        "display_averages": False,
        "width": "responsive"
    }
})

model.render_table({
    "timeseries": "quarterly",
    "data": {
        "income:revenue": "Revenue",
        "flow:netCashProvidedByOperatingActivities": "Cash from Operating Activities",
        "user:%cashFromOperatingActivitiesMargin": "Cash from Operating Activities Margin",
        "flow:freeCashFlow": "Free Cash Flow",
        "user:%freeCashFlowMargin": "Free Cash Flow Margin",
        "flow:depreciationAndAmortization": "Depreciation and Amortization",
        "user:%depreciationAndAmortizationMargin": "Depreciation and Amortization Margin",
        "flow:capitalExpenditure": "Capital Expenditure",
        "user:%capitalExpenditureMargin": "Capital Expenditure Margin",
    },
    "start": data.get("""
        -assumption:#quarters
    """),
    "end": 0,
    "properties": {
        "title": "Cash Flow Statement Margins",
        "order": "descending",
        "number_format": "M",
        "display_averages": False,
        "width": "responsive"
    }
})

model.render_chart({
    "timeseries": "quarterly",
    "data": {
        "user:%grossMargin": "Gross Margin",
        "user:%operatingMargin": "Operating Margin",
        "user:%netMargin": "Net Margin",
        "user:%freeCashFlowMargin": "Free Cash Flow Margin",
    },
    "start": data.get("""
        -assumption:#quarters
    """),
    "end": 0,
    "properties": {
        "title": "Quarterly Chart",
        "set_editable": [],
        "hidden_keys": [],
        "bar_keys": ["user:%grossMargin", "user:%operatingMargin", "user:%netMargin", "user:%freeCashFlowMargin"],
        "width": "full"
    }
})

Years and Quarters

Years Years The number of historical years used to render the annual chart and tables.	#
Quarters Quarters The number of historical quarters used to render the quarterly chart and tables.	#

Margin Analysis Report

Margins refer to the ratio between a financial report item and the revenue (example: Net Income Margin = Net Income / Revenue).

This analysis provides annual and quarterly sections for reporting key financial margins.

Annual Section

The annual section uses annual data to calculate margins and growth rates.

Income Statement Margins

Monetary values in USD amounts except #	LTM Mar 09	2016 Oct 29	2015 Oct 31	2014 Nov 01	2013 Oct 26
Revenue	2,341	2,346	2,263	2,211	2,223
Revenue Growth Rate	-0.206%	3.63%	2.36%	-0.522%	-0.666%
Cost of Revenue	859.4	829.3	735.4	745.5	814
Gross Profit	1,481	1,516	1,528	1,466	1,409
Gross Margin	63.28%	64.65%	67.51%	66.29%	63.38%
Operating Income	61.35	307.1	492.7	386.1	308.5
Operating Margin	2.62%	13.09%	21.77%	17.46%	13.88%
Net Income	30.43	213.8	340.4	238	208.6
Net Margin	1.3%	9.12%	15.04%	10.76%	9.38%

Cash Flow Statement Margins

Monetary values in USD amounts except #	LTM Mar 09	2016 Oct 29	2015 Oct 31	2014 Nov 01	2013 Oct 26
Revenue	2,341	2,346	2,263	2,211	2,223
Cash from Operating Activities	201.7	409.9	447.5	541.6	451
Cash from Operating Activities Margin	8.62%	17.48%	19.77%	24.49%	20.29%
Free Cash Flow	155.8	332.9	378.8	486.9	398.7
Free Cash Flow Margin	6.66%	14.19%	16.73%	22.02%	17.93%
Depreciation and Amortization	182.7	143.2	98.52	101.8	185.3
Depreciation and Amortization Margin	7.8%	6.11%	4.35%	4.6%	8.34%
Capital Expenditure	-45.86	-77.05	-68.74	-54.73	-52.37
Capital Expenditure Margin	-1.96%	-3.28%	-3.04%	-2.48%	-2.36%

Annual Chart

Monetary values in USD

{"sectionId": "section-chart-1", "sectionType": "chart", "title": "Annual Chart", "timeseries": "annual", "series": [{"label": "Gross Margin", "mappingKey": "user:%grossMargin", "data": [{"l": "2013", "x": "2013-10-26", "y": 63.38}, {"l": "2014", "x": "2014-11-01", "y": 66.29}, {"l": "2015", "x": "2015-10-31", "y": 67.51}, {"l": "2016", "x": "2016-10-29", "y": 64.65}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "annual", "hidden": false}, {"label": "Operating Margin", "mappingKey": "user:%operatingMargin", "data": [{"l": "2013", "x": "2013-10-26", "y": 13.88}, {"l": "2014", "x": "2014-11-01", "y": 17.46}, {"l": "2015", "x": "2015-10-31", "y": 21.77}, {"l": "2016", "x": "2016-10-29", "y": 13.09}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "annual", "hidden": false}, {"label": "Net Margin", "mappingKey": "user:%netMargin", "data": [{"l": "2013", "x": "2013-10-26", "y": 9.39}, {"l": "2014", "x": "2014-11-01", "y": 10.76}, {"l": "2015", "x": "2015-10-31", "y": 15.04}, {"l": "2016", "x": "2016-10-29", "y": 9.12}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "annual", "hidden": false}, {"label": "Free Cash Flow Margin", "mappingKey": "user:%freeCashFlowMargin", "data": [{"l": "2013", "x": "2013-10-26", "y": 17.93}, {"l": "2014", "x": "2014-11-01", "y": 22.02}, {"l": "2015", "x": "2015-10-31", "y": 16.73}, {"l": "2016", "x": "2016-10-29", "y": 14.19}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "annual", "hidden": false}], "editableDates": {}, "properties": {"display_table": false}, "width": "full"}

Quarterly Section

The quarterly section uses quarterly data to calculate margins and growth rates.

Income Statement Margins

Monetary values in USD amounts except #	2017 (Q2) Jul 29	2017 (Q1) Apr 29	2016 (Q4) Jan 28	2016 (Q3) Oct 29	2016 (Q2) Jul 30	2016 (Q1) Apr 30
Revenue	549.3	552.8	581.5	657.3	590.7	523.3
Revenue Growth Rate	-0.631%	-4.94%	-11.54%	11.27%	12.88%
Cost of Revenue	198.1	210	214.3	237	233.8	173
Gross Profit	351.1	342.8	367.1	420.3	356.9	350.3
Gross Margin	63.93%	62.01%	63.14%	63.95%	60.42%	66.94%
Operating Income	-19.88	-5.93	4.29	82.87	20.59	82.67
Operating Margin	-3.62%	-1.07%	0.738%	12.61%	3.49%	15.8%
Net Income	-19.51	-10.97	-5.68	66.59	10.49	43.09
Net Margin	-3.55%	-1.98%	-0.977%	10.13%	1.78%	8.23%

Cash Flow Statement Margins

Monetary values in USD amounts except #	2017 (Q2) Jul 29	2017 (Q1) Apr 29	2016 (Q4) Jan 28	2016 (Q3) Oct 29	2016 (Q2) Jul 30	2016 (Q1) Apr 30
Revenue	549.3	552.8	581.5	657.3	590.7	523.3
Cash from Operating Activities	-60.61	108	-2.81	157	28.27	112.4
Cash from Operating Activities Margin	-11.04%	19.55%	-0.483%	23.89%	4.79%	21.48%
Free Cash Flow	-69.38	100.5	-15.15	139.8	10.89	93.85
Free Cash Flow Margin	-12.63%	18.19%	-2.6%	21.27%	1.84%	17.93%
Depreciation and Amortization	40.78	46.09	47.06	48.75	39.93	27.41
Depreciation and Amortization Margin	7.42%	8.34%	8.09%	7.42%	6.76%	5.24%
Capital Expenditure	-8.77	-7.51	-12.34	-17.24	-17.39	-18.59
Capital Expenditure Margin	-1.6%	-1.36%	-2.12%	-2.62%	-2.94%	-3.55%

Quarterly Chart

Monetary values in USD

{"sectionId": "section-chart-2", "sectionType": "chart", "title": "Quarterly Chart", "timeseries": "quarterly", "series": [{"label": "Gross Margin", "mappingKey": "user:%grossMargin", "data": [{"l": "2016 (Q1)", "x": "2016-04-30", "y": 66.94}, {"l": "2016 (Q2)", "x": "2016-07-30", "y": 60.42}, {"l": "2016 (Q3)", "x": "2016-10-29", "y": 63.95}, {"l": "2016 (Q4)", "x": "2017-01-28", "y": 63.14}, {"l": "2017 (Q1)", "x": "2017-04-29", "y": 62.01}, {"l": "2017 (Q2)", "x": "2017-07-29", "y": 63.93}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "quarterly", "hidden": false}, {"label": "Operating Margin", "mappingKey": "user:%operatingMargin", "data": [{"l": "2016 (Q1)", "x": "2016-04-30", "y": 15.8}, {"l": "2016 (Q2)", "x": "2016-07-30", "y": 3.49}, {"l": "2016 (Q3)", "x": "2016-10-29", "y": 12.61}, {"l": "2016 (Q4)", "x": "2017-01-28", "y": 0.738}, {"l": "2017 (Q1)", "x": "2017-04-29", "y": -1.07}, {"l": "2017 (Q2)", "x": "2017-07-29", "y": -3.62}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "quarterly", "hidden": false}, {"label": "Net Margin", "mappingKey": "user:%netMargin", "data": [{"l": "2016 (Q1)", "x": "2016-04-30", "y": 8.23}, {"l": "2016 (Q2)", "x": "2016-07-30", "y": 1.78}, {"l": "2016 (Q3)", "x": "2016-10-29", "y": 10.13}, {"l": "2016 (Q4)", "x": "2017-01-28", "y": -0.977}, {"l": "2017 (Q1)", "x": "2017-04-29", "y": -1.98}, {"l": "2017 (Q2)", "x": "2017-07-29", "y": -3.55}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "quarterly", "hidden": false}, {"label": "Free Cash Flow Margin", "mappingKey": "user:%freeCashFlowMargin", "data": [{"l": "2016 (Q1)", "x": "2016-04-30", "y": 17.93}, {"l": "2016 (Q2)", "x": "2016-07-30", "y": 1.84}, {"l": "2016 (Q3)", "x": "2016-10-29", "y": 21.27}, {"l": "2016 (Q4)", "x": "2017-01-28", "y": -2.6}, {"l": "2017 (Q1)", "x": "2017-04-29", "y": 18.19}, {"l": "2017 (Q2)", "x": "2017-07-29", "y": -12.63}], "dataType": "%", "displayAs": "bar", "dataTimeseries": "quarterly", "hidden": false}], "editableDates": {}, "properties": {"display_table": false}, "width": "full"}