American Metal & Technology (American Metal & Technology) Operating Income : $0.41 Mil (TTM As of Sep. 2010)

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What is American Metal & Technology Operating Income?

American Metal & Technology's Operating Income for the three months ended in Sep. 2010 was $0.48 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2010 was $0.41 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. American Metal & Technology's Operating Income for the three months ended in Sep. 2010 was $0.48 Mil. American Metal & Technology's Revenue for the three months ended in Sep. 2010 was $2.99 Mil. Therefore, American Metal & Technology's Operating Margin % for the quarter that ended in Sep. 2010 was 15.92%.

American Metal & Technology'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. American Metal & Technology's annualized ROC % for the quarter that ended in Sep. 2010 was 13.29%. American Metal & Technology's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2010 was 21.73%.

American Metal & Technology Operating Income Historical Data

The historical data trend for American Metal & Technology'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.

American Metal & Technology Operating Income Chart

American Metal & Technology Annual Data

Trend

Jul00

Jul01

Jul02

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Jul04

Jul05

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Dec07

Dec08

Dec09

Operating Income

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-0.12

1.65

2.06

3.80

-0.97

American Metal & Technology Quarterly Data
	Oct05	Jan06	Apr06	Jul06	Oct06	Jan07	Apr07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10
Operating Income	Get a 7-Day Free Trial															-0.32	-0.43	-0.08	0.44	0.48

American Metal & Technology 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 Sep. 2010 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.41 Mil.

American Metal & Technology (OTCPK:AMGY) Operating Income Explanation

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

American Metal & Technology's annualized ROC % for the quarter that ended in Sep. 2010 is calculated as:

	ROC % (Q: Sep. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2010 )	+	Invested Capital (Q: Sep. 2010 ))	/ count )
=	1.904 * ( 1 - 15.2% )	/	( (11.414	+	12.877)	/ 2 )
=	1.614592	/	12.1455
=	13.29 %

where

	Invested Capital		(Q: Jun. 2010 )
=	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	))
=	18.712	-	1.673	-	( 5.625	-	max(0, 1.708	-	10.615	+	5.625	))
=	11.414

	Invested Capital		(Q: Sep. 2010 )
=	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	))
=	19.955	-	2.233	-	( 4.845	-	max(0, 2.252	-	11.849	+	4.845	))
=	12.877

Note: The Operating Income data used here is four times the quarterly (Sep. 2010) data.

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

American Metal & Technology's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2010 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2010 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2010		Q: Sep. 2010
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1.904	/	( ( (7.504 + max(1.322, 0))	+	(7.508 + max(1.19, 0)) )	/	2 )
=	1.904	/	( ( 8.826	+	8.698 )	/	2 )
=	1.904	/	8.762
=	21.73 %

where Working Capital is:

	Working Capital		(Q: Jun. 2010 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.701	+	2.194	+	0.135)	-	(1.673	+	0.035	+	0)
=	1.322

	Working Capital		(Q: Sep. 2010 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.846	+	2.485	+	0.111)	-	(2.233	+	0.019	+	-4.4408920985006E-16)
=	1.19

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2010) EBIT data.

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

American Metal & Technology's Operating Margin % for the quarter that ended in Sep. 2010 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2010 )	/	Revenue (Q: Sep. 2010 )
	=	0.476	/	2.99
	=	15.92 %

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.

American Metal & Technology Operating Income Related Terms

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American Metal & Technology (American Metal & Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » American Metal & Technology Inc (OTCPK:AMGY) » Definitions » Operating Income

Traded in Other Exchanges

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Address

No. 11 Shi Xing Street, Badachu Hi-Tech Zone, Shijingshan District, Beijing, CHN, 100041

Website

http://www.amtg-usa.com

American Metal & Technology Inc through its subsidiaries is engaged in precision casting, machining, mold design and manufacturing in the People's Republic of China. It manufacture investment casting and machined products, including valves, pipe fittings, dispensers, machinery spare parts, water treatment parts, automotive and airplane accessories, electronic circuit boards for home appliances and motion controllers, and other equipment parts.

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