Enterprise Products Partners LP (Enterprise Products Partners LP) Operating Income : $6,467 Mil (TTM As of Dec. 2023)

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What is Enterprise Products Partners LP Operating Income?

Enterprise Products Partners LP's Operating Income for the three months ended in Dec. 2023 was $1,806 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $6,467 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Enterprise Products Partners LP's Operating Income for the three months ended in Dec. 2023 was $1,806 Mil. Enterprise Products Partners LP's Revenue for the three months ended in Dec. 2023 was $14,622 Mil. Therefore, Enterprise Products Partners LP's Operating Margin % for the quarter that ended in Dec. 2023 was 12.35%.

Warning Sign:

Enterprise Products Partners LP operating margin has been in a 5-year decline. The average rate of decline per year is -4.6%.

Enterprise Products Partners LP's 5-Year average Growth Rate for Operating Margin % was -4.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Enterprise Products Partners LP's annualized ROC % for the quarter that ended in Dec. 2023 was 11.84%. Enterprise Products Partners LP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 16.83%.

Enterprise Products Partners LP Operating Income Historical Data

The historical data trend for Enterprise Products Partners LP'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.

Enterprise Products Partners LP Operating Income Chart

Enterprise Products Partners LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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5,515.70

4,609.00

5,520.00

6,443.00

6,467.00

Enterprise Products Partners LP Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income	Get a 7-Day Free Trial															1,636.00	1,630.00	1,458.00	1,573.00	1,806.00

Enterprise Products Partners LP 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 $6,467 Mil.

Enterprise Products Partners LP (NYSE:EPD) Operating Income Explanation

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

Enterprise Products Partners LP'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 )
=	7224 * ( 1 - -0.06% )	/	( (61040	+	61105)	/ 2 )
=	7228.3344	/	61072.5
=	11.84 %

where

	Invested Capital		(Q: Sep. 2023 )
=	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	))
=	69804	-	9807	-	( 171	-	max(0, 12475	-	11432	+	171	))
=	61040

	Invested Capital		(Q: Dec. 2023 )
=	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	))
=	70982	-	10760	-	( 180	-	max(0, 13131	-	12248	+	180	))
=	61105

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

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

Enterprise Products Partners LP'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 )
=	7712	/	( ( (45340 + max(251, 0))	+	(45804 + max(230, 0)) )	/	2 )
=	7712	/	( ( 45591	+	46034 )	/	2 )
=	7712	/	45812.5
=	16.83 %

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)
=	(6923	+	3345	+	988)	-	(9807	+	0	+	1198)
=	251

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(7765	+	3352	+	944)	-	(10760	+	0	+	1071)
=	230

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 %:

Enterprise Products Partners LP'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 )
	=	1806	/	14622
	=	12.35 %

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.

Enterprise Products Partners LP Operating Income Related Terms

Thank you for viewing the detailed overview of Enterprise Products Partners LP's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Enterprise Products Partners LP (Enterprise Products Partners LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Enterprise Products Partners LP (NYSE:EPD) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

1100 Louisiana Street, 10th Floor, Houston, TX, USA, 77002

Website

https://www.enterpriseproducts.com

Enterprise Products Partners is a master limited partnership that transports and processes natural gas, natural gas liquids, crude oil, refined products and petrochemicals. It is one of the largest midstream companies, with operations servicing most producing regions in the Lower 48 states. Enterprise is particularly dominant in the NGL market and is one of the few MLPs that provide midstream services across the full hydrocarbon value chain.

Executives

Aj Teague	officer: Executive Vice President	1100 LOUISIANA 10TH FLOOR, HOUSTON TX 77002
John R Rutherford	director	1100 LOUISIANA STREET, 10TH FLOOR, HOUSTON TX 77002
William C Montgomery	director	C/O APACHE CORPORATION, 2000 POST OAK BLVD., SUITE 100, HOUSTON TX 77056
Rebecca G. Followill	director	1100 LOUISIANA STREET, HOUSTON TX 77002
Carin Marcy Barth	director
Randa Duncan Williams	10 percent owner	1100 LOUISIANA 10TH FLOOR, HOUSTON TX 77002
Graham W. Bacon	officer: Group Senior Vice President	1100 LOUISIANA STREET, HOUSTON TX 77002
Richard H Bachmann	director, officer: Executive VP & CLO	1100 LOUISIANA 10TH FLOOR, HOUSTON TX 77002
W Randall Fowler	director, officer: Sr. Vice President & Treasurer	1100 LOUISIANA 10TH FLOOR, HOUSTON TX 77002
Robert D Sanders	officer: EVP, Asset Optimization	1100 LOUISIANA, SUITE 1000, HOUSTON TX 77002
Christian M. Nelly	officer: EVP-Finance and Treasurer	1100 LOUISIANA STREET, HOUSTON TX 77002
Murray E Brasseux	director	17 SOUTH BRIAR HOLLOW LANE, HOUSTON TX 77027
James T Hackett	director	C/O FLUOR CORPORATION, 6700 LAS COLINAS BLVD, IRVING TX 75039
Edwin E Smith	director	1100 LOUISIANA 10TH FLOOR, HOUSTON TX 77002
Brent B. Secrest	officer: Senior Vice President	1100 LOUISIANA STREET, HOUSTON TX 77002