Houston Wire & Cable Co (Houston Wire & Cable Co) Operating Income : $-2.6 Mil (TTM As of Mar. 2021)

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What is Houston Wire & Cable Co Operating Income?

Houston Wire & Cable Co's Operating Income for the three months ended in Mar. 2021 was $1.4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2021 was $-2.6 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Houston Wire & Cable Co's Operating Income for the three months ended in Mar. 2021 was $1.4 Mil. Houston Wire & Cable Co's Revenue for the three months ended in Mar. 2021 was $67.0 Mil. Therefore, Houston Wire & Cable Co's Operating Margin % for the quarter that ended in Mar. 2021 was 2.13%.

Houston Wire & Cable 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. Houston Wire & Cable Co's annualized ROC % for the quarter that ended in Mar. 2021 was 2.54%. Houston Wire & Cable Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2021 was 1.56%.

Houston Wire & Cable Co Operating Income Historical Data

The historical data trend for Houston Wire & Cable 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.

Houston Wire & Cable Co Operating Income Chart

Houston Wire & Cable Co Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Operating Income

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-4.15

4.60

13.96

7.00

-2.23

Houston Wire & Cable Co Quarterly Data
	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21
Operating Income	Get a 7-Day Free Trial															1.79	-2.02	-0.52	-1.48	1.43

Houston Wire & Cable 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 Mar. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $-2.6 Mil.

Houston Wire & Cable Co (NAS:HWCC) Operating Income Explanation

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

Houston Wire & Cable Co's annualized ROC % for the quarter that ended in Mar. 2021 is calculated as:

	ROC % (Q: Mar. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2020 )	+	Invested Capital (Q: Mar. 2021 ))	/ count )
=	5.72 * ( 1 - 40% )	/	( (144.319	+	126.177)	/ 2 )
=	3.432	/	135.248
=	2.54 %

where

	Invested Capital		(Q: Dec. 2020 )
=	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	))
=	157.712	-	13.393	-	( 0	-	max(0, 26.347	-	118.233	+	0	))
=	144.319

	Invested Capital		(Q: Mar. 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	))
=	153.978	-	26.041	-	( 1.76	-	max(0, 28.789	-	115.86	+	1.76	))
=	126.177

Note: The Operating Income data used here is four times the quarterly (Mar. 2021) data.

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

Houston Wire & Cable Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2021 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2021 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2020		Q: Mar. 2021
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1.668	/	( ( (18.337 + max(93.879, 0))	+	(17.353 + max(84.922, 0)) )	/	2 )
=	1.668	/	( ( 112.216	+	102.275 )	/	2 )
=	1.668	/	107.2455
=	1.56 %

where Working Capital is:

	Working Capital		(Q: Dec. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(38.057	+	68.47	+	8.484)	-	(13.393	+	0	+	7.739)
=	93.879

	Working Capital		(Q: Mar. 2021 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(42.878	+	65.187	+	2.898)	-	(26.041	+	0	+	0)
=	84.922

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2021) EBIT data.

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

Houston Wire & Cable Co's Operating Margin % for the quarter that ended in Mar. 2021 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2021 )	/	Revenue (Q: Mar. 2021 )
	=	1.43	/	67.03
	=	2.13 %

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 Wire & Cable Co Operating Income Related Terms

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Houston Wire & Cable Co (Houston Wire & Cable Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Houston Wire & Cable Co (NAS:HWCC) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

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Address

10201 North Loop East, Houston, TX, USA, 77029

Website

https://www.houwire.com

Houston Wire & Cable Co is a distributor of electrical and mechanical wire and cable in the U.S. industrial market. The company offers products in most categories of wire and cable, including continuous and interlocked armor cable; electronic wire and cable; flexible and portable cord; instrumentation and thermocouple cable; primary and secondary aluminum distribution cable, hardware and corrosion-resistant products including inch and metric bolts, screws, nuts, washers, rivets, and hose clamps. It has three target markets: utility market, industrial market, and infrastructure market.

Executives

Roy W Haley	director	COMMERCE COURT FOUR STATION SQUARE, SUITE 700, PITTSBURGH PA 15219
G Gary Yetman	director	P.O. BOX 2139 EDWARDS CO 81632
William H Sheffield	director	401 QUEENS QUAY WEST SUITE 104 TORONTO A6 M5V 2Y2
Eric Wayne Davis	officer: INTERIM CFO & CAO	10201 NORTH LOOP EAST HOUSTON TX 77029
Jerry Michael Zurovchak	officer: SENIOR VP & COO	10201 NORTH LOOP EAST HOUSTON TX 77029
Christopher M. Micklas	officer: VP & CFO	ONE MEMORIAL CITY PLAZA, 800 GESSNER ROAD, SUITE 875, HOUSTON TX 77024
Pokluda James L Iii	director	10201 N. LOOP EAST HOUSTON TX 77029
Sandford W. Rothe	director	1 GOOSEBERRY LANE CHERRY HILLS VILLAGE CO 80113
David Nierenberg	director, 10 percent owner	19605 NE 8TH STREET, CAMAS WA 98607
Nierenberg Investment Management Co	10 percent owner	19605 NE 8TH ST, CAMAS WA 98607
Margaret Laird	director	1283 BLACKBIRD COURT BOULDER CO 80303
Robert L Reymond	director	10721 W. 118TH TERRACE OVERLAND PARK KS 66210
Michael T Campbell	director	HOUSTON WIRE & CABLE COMPANY, 10201 NORTH LOOP EAST, HOUSTON TX 77029
Mark A Ruelle	director	C/O EVERGY, INC., 1200 MAIN STREET, KANSAS CITY MO 64105
Nicol G Graham	officer: VP, CFO, TREASURER & SECRETARY	10201 NORTH LOOP EAST HOUSTON TX 77029