THE CATO CORPORATION (CATO)

Apparel Retail · Price $2.61
Updated: Aug 31, 2026
Operating Income (TTM)
$-7.2M
Trailing 12 Months
Growth Rate
2.84%
Log-Linear Regression (16Q)
Operating Margin
-1.09%
Operational Efficiency
EV/Operating Income
N/A
Valuation Multiple
Net Income
$91.0K
After Interest & Taxes

📈 Operating Income History (16 Quarters)

🧮 CATO Operating Income Breakdown

Operating Income = Gross Profit - Operating Expenses (SG&A, R&D, etc.)
Revenue (Top Line) $654.7M
Less: Cost of Revenue → Gross Profit $226.1M
Equals: Operating Income (EBIT) $-7.2M
Then: Less Interest & Taxes → Net Income $91.0K

Understanding Operating Income

Operating Income, also known as EBIT (Earnings Before Interest and Taxes), measures a company's profit from its core business operations before financing costs and taxes. For CATO, the trailing twelve month operating income is $-7.2M.

Why Operating Income Matters

Operating income isolates business performance from capital structure decisions (debt vs equity financing) and tax strategies. This makes it ideal for comparing companies with different debt levels or tax situations. It shows how efficiently management runs the core operations.

CATO's operating income growth rate of 2.84% (based on log-linear regression of 16 quarters) indicates modest positive growth in core business operations.

Operating Income vs Other Profitability Metrics

Net Income: $91.0K →

The bottom line after interest and taxes. Net income shows the final profit, while operating income excludes financing decisions.

Free Cash Flow: $-1.1M →

Actual cash generated after capital expenditures. FCF can differ significantly from operating income due to working capital and capex.

Owner Earnings: $-1.1M →

Buffett's measure of true cash generation. Adds back depreciation and subtracts only maintenance capex.

Revenue: $654.7M →

The top line that operating income is derived from. Operating margin shows what percentage becomes operational profit.

Operating Margin Analysis

CATO's operating margin of -1.09% shows what percentage of revenue converts to operating profit after all operating expenses. Negative operating margins indicate the company is losing money on core operations.

EV/Operating Income Valuation

The EV/Operating Income ratio is not available for this company.

Summary: CATO Operating Income Trend

THE CATO CORPORATION (CATO) has a negative operating margin of -1.09% — the business is currently loss-making at the operating level. Operating income trend: 2.84% annually — positive but below the 10% level Zyberno considers strong growth. For complete financial analysis, view the full CATO stock report on Zyberno.

Frequently Asked Questions

What is CATO's current operating income?

THE CATO CORPORATION's TTM operating income is $-7.2M, growing at 2.84% annually — positive but below the 10% level Zyberno considers strong growth.

Is CATO's operating income growing?

THE CATO CORPORATION (CATO) has a negative operating margin of -1.09% — the business is currently loss-making at the operating level. Operating income trend: 2.84% annually — positive but below the 10% level Zyberno considers strong growth.

What is CATO's operating margin?

THE CATO CORPORATION (CATO) has a negative operating margin of -1.09% — the business is currently loss-making at the operating level. Operating income trend: 2.84% annually — positive but below the 10% level Zyberno considers strong growth.

What is the difference between operating income and EBIT?

Operating income and EBIT (Earnings Before Interest and Taxes) are generally the same metric - both measure profit from core operations before financing costs and taxes. CATO's EBIT/Operating Income is $-7.2M.

How does operating income differ from net income?

Operating income excludes interest expense and income taxes, while net income includes them. CATO's operating income is $-7.2M versus net income of $91.0K. The difference reflects financing costs and tax burden.

📊 Valuation Trilogy
Three interconnected metrics built on Owner Earnings
💎
Intrinsic Value
DCF Fair Value
🛡️
Margin of Safety
Valuation Gap
🎯
Expected Return
Projected Annual
Click any metric for full methodology and detailed analysis

📊 Full CATO Stock Report

See CATO's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.

💵 CATO Free Cash Flow

Compare to Free Cash Flow which subtracts all capital expenditures, not just maintenance CapEx.

💰 CATO Owner Earnings

Compare to Buffett's Owner Earnings metric which uses maintenance CapEx instead of total capital expenditures.

📈 CATO Earnings Per Share

Analyze EPS trends, P/E ratio, earnings yield, and per-share profitability metrics.

🎯 CATO Earnings Surprise (SUE)

See whether CATO is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.

📊 CATO Revenue

Analyze revenue trends, growth rate, P/S ratio, and top-line sales performance.

💰 CATO Net Income

Analyze the bottom-line profit, P/E ratio, and net profit margin trends.

🔶 CATO Operating Income

Analyze EBIT, operating margin, and core business profitability before interest and taxes.

💜 CATO Gross Profit

Analyze gross margin, pricing power, and profitability before operating expenses.

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