GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Houston American Energy Corp (AMEX:HUSA) » Definitions » Operating Income

Houston American Energy (Houston American Energy) Operating Income

: $-1.70 Mil (TTM As of Dec. 2023)
View and export this data going back to 2002. Start your Free Trial

Houston American Energy's Operating Income for the three months ended in Dec. 2023 was $-0.38 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-1.70 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Houston American Energy's Operating Income for the three months ended in Dec. 2023 was $-0.38 Mil. Houston American Energy's Revenue for the three months ended in Dec. 2023 was $0.25 Mil. Therefore, Houston American Energy's Operating Margin % for the quarter that ended in Dec. 2023 was -153.04%.

Warning Sign:

Houston American Energy Corp operating margin has been in a 5-year decline. The average rate of decline per year is -27.6%.

Houston American Energy's 5-Year average Growth Rate for Operating Margin % was -27.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Houston American Energy's annualized ROC % for the quarter that ended in Dec. 2023 was -19.63%. Houston American Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -47.57%.


Houston American Energy Operating Income Historical Data

The historical data trend for Houston American Energy'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.

Houston American Energy Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.59 -1.66 -1.03 -0.78 -1.70

Houston American Energy Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.21 -0.26 -0.66 -0.40 -0.38

Houston American Energy 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 Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-1.70 Mil.

* 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.


Houston American Energy  (AMEX:HUSA) Operating Income Explanation

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

Houston American Energy's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-1.512 * ( 1 - 0% )/( (9.12 + 6.288)/ 2 )
=-1.512/7.704
=-19.63 %

where

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

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

Houston American Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-1.512/( ( (4.653 + max(-0.068000000000001, 0)) + (1.704 + max(-0.067, 0)) )/ 2 )
=-1.512/( ( 4.653 + 1.704 )/ 2 )
=-1.512/3.1785
=-47.57 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.351 + 0 + 0.102) - (0.521 + 0 + 0)
=-0.068000000000001

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.072 + 0 + 0.035) - (0.174 + 0 + 0)
=-0.067

When net working capital is negative, 0 is used.

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

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

Houston American Energy's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=-0.378/0.247
=-153.04 %

* 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.

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.


Houston American Energy Operating Income Related Terms

Thank you for viewing the detailed overview of Houston American Energy's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Houston American Energy (Houston American Energy) Business Description

Traded in Other Exchanges
N/A
Address
801 Travis Street, Suite 1425, Houston, TX, USA, 77002
Houston American Energy Corp is an independent oil and gas company focused on the development, exploration, exploitation, acquisition, and production of natural gas and crude oil properties. Its properties, and operations, are in the U.S. Permian Basin, the U.S. Gulf Coast region, particularly Texas and Louisiana, and in the South American country of Colombia. The company's an exploration and development projects are focused on existing property interests, and future acquisition of additional property interests, in the Texas Permian Basin, the onshore Texas and Louisiana Gulf Coast region, and in the South American country of Colombia. The Company majorly has operations in two geographical areas, the United States and Colombia.
Executives
James A Schoonover director 1770 COUNTY ROAD H2, WHITE BEAR TOWNSHIP MN 55110
John F Terwilliger director, 10 percent owner, officer: President and CEO
Bitnile Holdings, Inc. 10 percent owner 11411 SOUTHERN HIGHLANDS PARKWAY, SUITE 240, LAS VEGAS NV 89141
Dyke Torbjorn Van officer: VP - Business Development 801 TRAVIS STREET, SUITE 1425, HOUSTON TX 77002
R. Keith Grimes director 13307 GOLDEN VALLEY DR., CYPRESS TX 77429
John P Boylan director 450 WESTHEIMER DR., HOUSTON TX 77024
Stephen Hartzell director 1001 MCKINNEY, SUITE 805, HOUSTON TX 77002
Roy W Jageman director 777 MAIN STREET, C/O ENCORE ACQUISITION CO, FORT WORTH TX 76102
James J Jacobs officer: Chief Financial Officer 801 TRAVIS, SUITE 2020, HOUSTON TX 77002
Kenneth Jeffers officer: Senior VP of Exploration 801 TRAVIS STREET, SUITE 1425, HOUSTON TX 77002
Nokomis Capital, L.l.c. 10 percent owner 1717 MCKINNEY AVENUE, SUITE 850, DALLAS TX 75202
Brett Hendrickson 10 percent owner 300 CRESCENT COURT, SUITE 1740, DALLAS TX 75201
Orrie Lee Tawes director, 10 percent owner CIBC OPPENHEIMER WORLD FINANCIAL CENTER, NEW YORK NY 110281
Richard J Howe director 73 SADDLEBROOK LN, HOUSTON TX 77024
J Alex Loftus director 801 TRAVIS, SUITE 1425, HOUSTON TX 77002