Cia Energetica DE Minas Gerais - Cemig (Cia Energetica DE Minas Gerais - Cemig) Operating Income

: $1,411 Mil (TTM As of Sep. 2023)

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Cia Energetica DE Minas Gerais - Cemig's Operating Income for the three months ended in Sep. 2023 was $319 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $1,411 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Cia Energetica DE Minas Gerais - Cemig's Operating Income for the three months ended in Sep. 2023 was $319 Mil. Cia Energetica DE Minas Gerais - Cemig's Revenue for the three months ended in Sep. 2023 was $1,909 Mil. Therefore, Cia Energetica DE Minas Gerais - Cemig's Operating Margin % for the quarter that ended in Sep. 2023 was 16.74%.

Good Sign:

Cia Energetica DE Minas Gerais - Cemig operating margin is expanding. Margin expansion is usually a good sign.

Cia Energetica DE Minas Gerais - Cemig's 5-Year average Growth Rate for Operating Margin % was 4.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Cia Energetica DE Minas Gerais - Cemig's annualized ROC % for the quarter that ended in Sep. 2023 was 11.78%. Cia Energetica DE Minas Gerais - Cemig's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 was 220.87%.

Cia Energetica DE Minas Gerais - Cemig Operating Income Historical Data

The historical data trend for Cia Energetica DE Minas Gerais - Cemig'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.

Cia Energetica DE Minas Gerais - Cemig Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Operating Income

741.36

733.83

835.42

994.54

945.97

Cia Energetica DE Minas Gerais - Cemig Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Operating Income																244.52	445.54	335.22	310.29	319.48

Cia Energetica DE Minas Gerais - Cemig 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. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,411 Mil.

Cia Energetica DE Minas Gerais - Cemig (NYSE:CIG) Operating Income Explanation

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

Cia Energetica DE Minas Gerais - Cemig's annualized ROC % for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	1277.9 * ( 1 - 16.38% )	/	( (8956.044	+	9193.31)	/ 2 )
=	1068.57998	/	9074.677
=	11.78 %

where

	Invested Capital		(Q: Jun. 2023 )
=	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	))
=	11237.42	-	1578.245	-	( 927.753	-	max(0, 2086.582	-	2789.713	+	927.753	))
=	8956.044

	Invested Capital		(Q: Sep. 2023 )
=	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	))
=	11372.223	-	1530.362	-	( 1013.02	-	max(0, 2169.802	-	2818.353	+	1013.02	))
=	9193.31

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data.

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

Cia Energetica DE Minas Gerais - Cemig's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Sep. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1426.808	/	( ( (616.894 + max(-602.229, 0))	+	(675.076 + max(-597.121, 0)) )	/	2 )
=	1426.808	/	( ( 616.894	+	675.076 )	/	2 )
=	1426.808	/	645.985
=	220.87 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(966.011	+	0	+	306.7)	-	(1578.245	+	0	+	296.695)
=	-602.229

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1010.995	+	0	+	311.013)	-	(1530.362	+	0	+	388.767)
=	-597.121

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2023) EBIT data.

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

Cia Energetica DE Minas Gerais - Cemig's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	319.475	/	1908.727
	=	16.74 %

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.

Cia Energetica DE Minas Gerais - Cemig Operating Income Related Terms

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Cia Energetica DE Minas Gerais - Cemig (Cia Energetica DE Minas Gerais - Cemig) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Cia Energetica DE Minas Gerais - Cemig (NYSE:CIG) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

CIG.C:USA CIGN:Mexico XCMIG:Spain CIDS:Germany CIDA:Germany CID:Germany CIDA:Germany CID:Germany CMIG4:Brazil CMIG3:Brazil

Address

Avenida Barbacena, 1200, Belo Horizonte, MG, BRA, 30190-131

Website

https://www.cemig.com.br

Cia Energetica DE Minas Gerais - Cemig Formerly Energy Company of Minas Gerais is a Brazilian power company that generates, transmits, and distributes electricity. As one of the largest power companies in Brazil, the firm operates across most Brazilian states and Chile. The company has various subsidiaries and operates chiefly through its generation, transmission, distribution, and gas segments. The majority of the company's revenue is derived from electricity sales to consumers. The company generates power primarily through hydroelectric resources and secondarily through thermal and wind resources.