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Renewable Energy Group (Renewable Energy Group) Operating Income : $206 Mil (TTM As of Mar. 2022)


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What is Renewable Energy Group Operating Income?

Renewable Energy Group's Operating Income for the three months ended in Mar. 2022 was $19 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2022 was $206 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Renewable Energy Group's Operating Income for the three months ended in Mar. 2022 was $19 Mil. Renewable Energy Group's Revenue for the three months ended in Mar. 2022 was $936 Mil. Therefore, Renewable Energy Group's Operating Margin % for the quarter that ended in Mar. 2022 was 2.03%.

Renewable Energy Group'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. Renewable Energy Group's annualized ROC % for the quarter that ended in Mar. 2022 was 4.50%. Renewable Energy Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2022 was 6.52%.


Renewable Energy Group Operating Income Historical Data

The historical data trend for Renewable Energy Group'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.

Renewable Energy Group Operating Income Chart

Renewable Energy Group Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.49 298.74 395.68 149.05 229.38

Renewable Energy Group Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Operating Income Get a 7-Day Free Trial 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 42.63 88.50 54.55 43.71 19.04

Renewable Energy Group 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 Mar. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $206 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.


Renewable Energy Group  (NAS:REGI) Operating Income Explanation

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

Renewable Energy Group's annualized ROC % for the quarter that ended in Mar. 2022 is calculated as:

ROC % (Q: Mar. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2021 ) + Invested Capital (Q: Mar. 2022 ))/ count )
=76.152 * ( 1 - 3.26% )/( (1595.399 + 1676.786)/ 2 )
=73.6694448/1636.0925
=4.50 %

where

Invested Capital(Q: Dec. 2021 )
=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))
=2558.944 - 175.074 - ( 788.471 - max(0, 246.613 - 1497.911+788.471))
=1595.399

Invested Capital(Q: Mar. 2022 )
=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))
=2628.046 - 267.985 - ( 683.275 - max(0, 308.092 - 1584.13+683.275))
=1676.786

Note: The Operating Income data used here is four times the quarterly (Mar. 2022) data.

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

Renewable Energy Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2022 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2021  Q: Mar. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=81.508/( ( (729.174 + max(432.118, 0)) + (781.23 + max(559.114, 0)) )/ 2 )
=81.508/( ( 1161.292 + 1340.344 )/ 2 )
=81.508/1250.818
=6.52 %

where Working Capital is:

Working Capital(Q: Dec. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(158.187 + 459.333 + 48.185) - (175.074 + 16.856 + 41.657)
=432.118

Working Capital(Q: Mar. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(212.584 + 556.255 + 85.15) - (267.985 + 26.89 + 0)
=559.114

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2022) EBIT data.

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

Renewable Energy Group's Operating Margin % for the quarter that ended in Mar. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2022 )/Revenue (Q: Mar. 2022 )
=19.038/935.989
=2.03 %

* 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.


Renewable Energy Group Operating Income Related Terms

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Renewable Energy Group (Renewable Energy Group) Business Description

Traded in Other Exchanges
N/A
Address
416 South Bell Avenue, Ames, IA, USA, 50010
Renewable Energy Group Inc is a producer and refiner of biofuels in the oil and gas industry. The company's operations include acquiring feedstock, operating biorefineries, and marketing and distributing renewable fuels. Its operating segments include Biomass-based Diesel, Services, and Corporate and other. The majority of the company's revenue comes from the sale of biomass-based diesel. Geographically, it operates in the United States, Germany and Other Foreign countries of which the United States derived maximum revenue. At its biorefineries, natural fats, oils, and greases are converted into biofuels and renewable chemicals.
Executives
Stacey Orlandi other: SVP, Manufacturing C/O RENEWABLE ENERGY GROUP, INC. 416 SOUTH BELL AVENUE AMES IA 50010
Eric Bowen officer: VP, Corp Bus Dev and Legal C/O RENEWABLE ENERGY GROUP, INC. 416 SOUTH BELL AVENUE AMES IA 50010
Dylan Glenn director 535 BROAD HOLLOW ROAD, SUITE B51, MELVILLE NY 11747
Niharika Ramdev director C/O XL HYBRIDS, INC., 145 NEWTON STREET, BOSTON MA 02135
Todd Samuels other: Chief Accounting Officer C/O RENEWABLE ENERGY GROUP, INC. 416 SOUTH BELL AVENUE AMES IA 50010
Chad Stone officer: Chief Financial Officer REG NEWCO, INC. 416 S. BELL AVENUE AMES IA 50010
Cynthia J Warner director, officer: President and CEO 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Harding Peter John Martin director 416 S. BELL AVE. AMES IA 50010
Richard Craig Bealmear officer: Chief Financial Officer 1114 COLFAX STREET EVANSTON IL 60201
Jeffrey Stroburg director REG NEWCO, INC. 416 S. BELL AVENUE AMES IA 50010
Christopher D. Sorrells director REG NEWCO, INC., 416 S. BELL AVENUE, AMES IA 50010
Todd Allen Robinson officer: InterimChief Financial Officer RENEWABLE ENERGY, INC. 416 SOUTH BELL AVENUE AMES IA 50010
Walter Z Berger director 416 SOUTH BELL AVENUE, AMES IA 50010
Gary Haer officer: VP, Sales and Marketing 416 SOUTH BELL AVENUE C/O RENEWABLE ENERGY GROUP, INC. AMES IA 50010
Michael M Scharf director 12312 OLIVE BOULEVARD SUITE 400 ST. LOUIS MO 63141

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