Connecticut Water Service (Connecticut Water Service) Operating Income : $36.2 Mil (TTM As of Jun. 2019)

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What is Connecticut Water Service Operating Income?

Connecticut Water Service's Operating Income for the three months ended in Jun. 2019 was $10.4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2019 was $36.2 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Connecticut Water Service's Operating Income for the three months ended in Jun. 2019 was $10.4 Mil. Connecticut Water Service's Revenue for the three months ended in Jun. 2019 was $30.7 Mil. Therefore, Connecticut Water Service's Operating Margin % for the quarter that ended in Jun. 2019 was 33.91%.

Connecticut Water Service'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. Connecticut Water Service's annualized ROC % for the quarter that ended in Jun. 2019 was 3.91%. Connecticut Water Service's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2019 was 4.86%.

Connecticut Water Service Operating Income Historical Data

The historical data trend for Connecticut Water Service'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.

Connecticut Water Service Operating Income Chart

Connecticut Water Service Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Operating Income

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28.76

25.82

32.56

33.12

35.17

Connecticut Water Service 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															10.45	16.24	3.94	5.61	10.40

Connecticut Water Service 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 $36.2 Mil.

Connecticut Water Service (NAS:CTWS) Operating Income Explanation

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

Connecticut Water Service'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 )
=	41.592 * ( 1 - 4.91% )	/	( (999.173	+	1024.663)	/ 2 )
=	39.5498328	/	1011.918
=	3.91 %

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	))
=	963.636	-	8.849	-	( 2.73	-	max(0, 84.501	-	40.115	+	2.73	))
=	999.173

	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	))
=	981.427	-	12.284	-	( 2.435	-	max(0, 95.915	-	40.395	+	2.435	))
=	1024.663

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

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

Connecticut Water Service'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 )
=	37.328	/	( ( (745.132 + max(13.099, 0))	+	(769.294 + max(9.918, 0)) )	/	2 )
=	37.328	/	( ( 758.231	+	779.212 )	/	2 )
=	37.328	/	768.7215
=	4.86 %

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)
=	(12.645	+	1.675	+	13.302)	-	(8.849	+	0	+	5.674)
=	13.099

	Working Capital		(Q: Jun. 2019 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(13.879	+	1.657	+	11.614)	-	(12.284	+	0	+	4.948)
=	9.918

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 %:

Connecticut Water Service'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 )
	=	10.398	/	30.664
	=	33.91 %

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.

Connecticut Water Service Operating Income Related Terms

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Connecticut Water Service (Connecticut Water Service) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Connecticut Water Service Inc (NAS:CTWS) » Definitions » Operating Income

Traded in Other Exchanges

N/A

Address

93 West Main Street, Clinton, CT, USA, 06413

Website

http://www.ctwater.com

Connecticut Water Service Inc is a water utility that operates in the northeastern region of the United States, specifically Connecticut and Maine. The company has various subsidiaries and divisions, including water operations, which supplies public drinking water; real estate transactions, which sells real estate holdings; and service rentals, which sells contracted water and wastewater services. The major customers of the firm are residential, commercial, fire protection, public authority, and industrial entities. The majority of the company's revenue is derived from its water operations segment and residential customers.

Executives

Ellen C Wolf	director	C/O AMERICAN WATER WORKS CO INC, 1025 LAUREL OAK RD P O BOX 1770, VOORHEES NJ 08043
Maureen P Westbrook	officer: VP, Customer & Reg Affairs	93 WEST MAIN ST, CLINTON CT 06413
A Kristen Johnson	officer: V.P. Human Resources	C/O CONNECTICUT WATER SERVICE, INC., 93 WEST MAIN STREET, CLINTON CT 06413
Mary Ann Hanley	director	93 WEST MAIN STREET, CLINTON CT 06413
Carol P Wallace	director	93 WEST MAIN STREET, CLINTON CT 06413
Hunt Heather	director	93 WEST MAIN STREET, CLINTON CT 06413
David C Benoit	officer: President & CEO	93 WEST MAIN ST, CLINTON CT 06413
Eric W Thornburg	director, officer: President/CEO/Chairman	13165 TEN OAK COURT, SARATOGA CA 95070
Judith Kelly	officer: Div. Pres. Maine Water	C/O NORTHEAST BANK, 500 CANAL STREET, LEWISTON ME 04240