Empire District Electric Co (Empire District Electric Co) Operating Income : $107.2 Mil (TTM As of Sep. 2016)

View and export this data going back to 1946. Start your Free Trial

What is Empire District Electric Co Operating Income?

Empire District Electric Co's Operating Income for the three months ended in Sep. 2016 was $39.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2016 was $107.2 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Empire District Electric Co's Operating Income for the three months ended in Sep. 2016 was $39.0 Mil. Empire District Electric Co's Revenue for the three months ended in Sep. 2016 was $175.4 Mil. Therefore, Empire District Electric Co's Operating Margin % for the quarter that ended in Sep. 2016 was 22.25%.

Empire District Electric Co'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. Empire District Electric Co's annualized ROC % for the quarter that ended in Sep. 2016 was 6.52%. Empire District Electric Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 was 7.45%.

Empire District Electric Co Operating Income Historical Data

The historical data trend for Empire District Electric Co'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.

Empire District Electric Co Operating Income Chart

Empire District Electric Co Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Operating Income

Get a 7-Day Free Trial

96.93

96.22

99.66

100.00

96.30

Empire District Electric Co Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Operating Income	Get a 7-Day Free Trial															35.78	19.76	23.24	25.17	39.01

Empire District Electric Co 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. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $107.2 Mil.

Empire District Electric Co (NYSE:EDE) Operating Income Explanation

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

Empire District Electric Co's annualized ROC % for the quarter that ended in Sep. 2016 is calculated as:

	ROC % (Q: Sep. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2016 )	+	Invested Capital (Q: Sep. 2016 ))	/ count )
=	156.056 * ( 1 - 0% )	/	( (2400.127	+	2389.632)	/ 2 )
=	156.056	/	2394.8795
=	6.52 %

where

	Invested Capital		(Q: Jun. 2016 )
=	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	))
=	2468.635	-	66.889	-	( 1.619	-	max(0, 151.431	-	167.288	+	1.619	))
=	2400.127

	Invested Capital		(Q: Sep. 2016 )
=	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	))
=	2476.557	-	78.994	-	( 7.931	-	max(0, 139.55	-	177.834	+	7.931	))
=	2389.632

Note: The Operating Income data used here is four times the quarterly (Sep. 2016) data.

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

Empire District Electric Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2016 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2016 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2016		Q: Sep. 2016
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	155.88	/	( ( (2048.583 + max(46.666, 0))	+	(2048.97 + max(37.713, 0)) )	/	2 )
=	155.88	/	( ( 2095.249	+	2086.683 )	/	2 )
=	155.88	/	2090.966
=	7.45 %

where Working Capital is:

	Working Capital		(Q: Jun. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(58.114	+	57.735	+	26.459)	-	(66.889	+	15.016	+	13.737)
=	46.666

	Working Capital		(Q: Sep. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(66.708	+	57.515	+	27.728)	-	(78.994	+	15.156	+	20.088)
=	37.713

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2016) EBIT data.

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

Empire District Electric Co's Operating Margin % for the quarter that ended in Sep. 2016 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2016 )	/	Revenue (Q: Sep. 2016 )
	=	39.014	/	175.354
	=	22.25 %

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.

Empire District Electric Co Operating Income Related Terms

Thank you for viewing the detailed overview of Empire District Electric Co's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Empire District Electric Co (Empire District Electric Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Empire District Electric Co (NYSE:EDE) » Definitions » Operating Income

Traded in Other Exchanges

N/A

Address

Website

http://www.empiredistrict.com

Empire District Electric Co is a Kansas corporation organized in 1909. The Company is an operating public utility engaged in the generation, purchase, transmission, distribution and sale of electricity in parts of Missouri, Kansas, Oklahoma and Arkansas. The Company operates its businesses as three segments; Electric, Gas and Other. The Company also provides water service to three towns in Missouri. The Company, along with its subsidiary The Empire District Gas Company, is engaged in the distribution of natural gas in Missouri. The Other segment consists of fiber optics business. As of December 31, 2013 the Company's electric operations serve approximately 168,800 customers and gas operations serve approximately 44,000 customers. The territory served by electric operations embraces an area of about 10,000 square miles, located principally in southwestern Missouri, and also includes smaller areas in southeastern Kansas, northeastern Oklahoma and northwestern Arkansas. The Company supplies electric service at retail to 119 incorporated communities as of December 31, 2013, and to various unincorporated areas and at wholesale to four municipally owned distribution systems. The Company operates under franchises having original terms of twenty years or longer in the incorporated communities. The three largest classes of on-system customers are residential, commercial and industrial. The largest single on-system wholesale customer is the city of Monett, Missouri. The Company currently supplements its on-system generating capacity with purchases of capacity and energy from other sources in order to meet the demands of its customers and the capacity margins applicable under current pooling agreements and National Electric Reliability Council rules. The generating facilities consist of three coal-fired generating plants, two natural gas generating plants and one hydroelectric generating plant. The Company's gas operations serve customers in northwest, north central and west central Missouri. As of December 31, 2013, gas operations served approximately 44,000 customers. The Company provides natural gas distribution to 48 communities and 377 transportation customers as of December 31, 2013. At December 31, 2013 the principal gas utility properties of the Company consisted of approximately 87 miles of transmission mains and approximately 1,160 miles of distribution mains. The three pipelines that serve the Company's gas customers are Southern Star Central Gas Pipeline, Panhandle Eastern Pipe Line Company and ANR Pipeline Company. The Company is subject to the jurisdiction of the Missouri Public Service Commission (MPSC), the State Corporation Commission of the State of Kansas (KCC), the Corporation Commission of Oklahoma (OCC) and the Arkansas Public Service Commission (APSC) with respect to services and facilities, rates and charges, regulatory accounting, valuation of property, depreciation and various other matters.

Executives

Herbert J Schmidt	director	1950 LAKE RIDGE DRIVE, THE VILLAGES FL 32162
Ross C Hartley	director	P O BOX 477 TENTON VILLAGE WY 83025
Thomas M Ohlmacher	director	P O BOX 1400, RAPID CITY SD 57709-1400
Bonnie Cruickshank Lind	director	3460 PRESTON RIDGE ROAD, ALPHARETTA GA 30005
Francis E Jeffries	director	800 SCUDDERS HILL ROAD, PLAINSBORO NJ 08536