Chesapeake Lodging Trust (Chesapeake Lodging Trust) Operating Income : $97.2 Mil (TTM As of Jun. 2019)

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What is Chesapeake Lodging Trust Operating Income?

Chesapeake Lodging Trust's Operating Income for the three months ended in Jun. 2019 was $33.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2019 was $97.2 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Chesapeake Lodging Trust's Operating Income for the three months ended in Jun. 2019 was $33.2 Mil. Chesapeake Lodging Trust's Revenue for the three months ended in Jun. 2019 was $159.0 Mil. Therefore, Chesapeake Lodging Trust's Operating Margin % for the quarter that ended in Jun. 2019 was 20.86%.

Chesapeake Lodging Trust'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. Chesapeake Lodging Trust's annualized ROC % for the quarter that ended in Jun. 2019 was 6.29%. Chesapeake Lodging Trust's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2019 was 6.42%.

Chesapeake Lodging Trust Operating Income Historical Data

The historical data trend for Chesapeake Lodging Trust'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.

Chesapeake Lodging Trust Operating Income Chart

Chesapeake Lodging Trust Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Operating Income

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85.45

102.81

109.95

107.16

98.79

Chesapeake Lodging Trust Quarterly Data
	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19
Operating Income	Get a 7-Day Free Trial															35.32	29.28	21.17	13.56	33.16

Chesapeake Lodging Trust 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 Jun. 2019 adds up the quarterly data reported by the company within the most recent 12 months, which was $97.2 Mil.

Chesapeake Lodging Trust (NYSE:CHSP) Operating Income Explanation

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

Chesapeake Lodging Trust's annualized ROC % for the quarter that ended in Jun. 2019 is calculated as:

	ROC % (Q: Jun. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2019 )	+	Invested Capital (Q: Jun. 2019 ))	/ count )
=	132.628 * ( 1 - 12.94% )	/	( (1841.888	+	1832.143)	/ 2 )
=	115.4659368	/	1837.0155
=	6.29 %

where

	Invested Capital		(Q: Mar. 2019 )
=	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	))
=	1955.571	-	67.582	-	( 46.101	-	max(0, 67.582	-	126.532	+	46.101	))
=	1841.888

	Invested Capital		(Q: Jun. 2019 )
=	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	))
=	1947.277	-	68.895	-	( 46.239	-	max(0, 68.895	-	130.305	+	46.239	))
=	1832.143

Note: The Operating Income data used here is four times the quarterly (Jun. 2019) data.

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

Chesapeake Lodging Trust's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2019 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2019 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2019		Q: Jun. 2019
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	115.964	/	( ( (1797.631 + max(12.849, 0))	+	(1785.694 + max(15.171, 0)) )	/	2 )
=	115.964	/	( ( 1810.48	+	1800.865 )	/	2 )
=	115.964	/	1805.6725
=	6.42 %

where Working Capital is:

	Working Capital		(Q: Mar. 2019 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(24.366	+	0	+	56.065)	-	(67.582	+	0	+	0)
=	12.849

	Working Capital		(Q: Jun. 2019 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(28.363	+	0	+	55.703)	-	(68.895	+	0	+	0)
=	15.171

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2019) EBIT data.

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

Chesapeake Lodging Trust's Operating Margin % for the quarter that ended in Jun. 2019 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2019 )	/	Revenue (Q: Jun. 2019 )
	=	33.157	/	158.977
	=	20.86 %

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.

Chesapeake Lodging Trust Operating Income Related Terms

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Chesapeake Lodging Trust (Chesapeake Lodging Trust) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Chesapeake Lodging Trust (NYSE:CHSP) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

4300 Wilson Boulevard, Suite 625, Arlington, VA, USA, 22203

Website

http://www.chesapeakelodgingtrust.com

Chesapeake Lodging Trust is a real estate investment trust that invests in upper-upscale hotels in business and convention markets and, selectively, premium select-service hotels in urban settings and other locations in the United States. The company operates through its hotel ownership segment. The firm's operations include management agreements, which includes partnering with third parties to manage its hotels; franchise agreements; and TRS lease agreements, which are intercompany agreements between Chesapeake's property-owning subsidiaries and its TRS lessees. The company's revenue streams include room, food and beverage, and other, of which the room segment contributes the vast majority of total revenue.

Executives

Thomas D Eckert	director	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
John W Hill	director	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
James L Francis	director, officer: President & CEO	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Douglas W Vicari	director, officer: EVP & CFO	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Thomas A Natelli	director	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
D Rick Adams	officer: EVP & COO	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Jeffrey D Nuechterlein	director	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Graham J. Wootten	officer: SVP, CAO & Secretary	C/O CHESAPEAKE LODGING TRUST, 1997 ANNAPOLIS EXCHANGE PARKWAY, ANNAPOLIS MD 21401
Angelique G. Brunner	director	C/O CHESAPEAKE LODGING TRUST, 4300 WILSON BOULEVARD, SUITE 625, ARLINGTON VA 22203
George F Mckenzie	director	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Geoffrey Hulme	10 percent owner	C/O PORTER ORLIN LLC, 666 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10103
A Alex Porter	10 percent owner	C/O PORTER ORLIN LLC, 666 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10103
Paul E Orlin	10 percent owner	C/O PORTER ORLIN LLC, 666 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10103
Jonathan W Friedland	10 percent owner	C/O PORTER ORLIN LLC, 666 FIFTH AVENUE, 34TH FLOOR, NEW YORK NY 10103
Porter Orlin Llc	10 percent owner	666 FIFTH AVENUE, SUITE 3403, NEW YORK NY 10103