Ossen Innovation Co (Ossen Innovation Co) Operating Income : $16.4 Mil (TTM As of Dec. 2020)

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What is Ossen Innovation Co Operating Income?

Ossen Innovation Co's Operating Income for the six months ended in Dec. 2020 was $8.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2020 was $16.4 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ossen Innovation Co's Operating Income for the six months ended in Dec. 2020 was $8.6 Mil. Ossen Innovation Co's Revenue for the six months ended in Dec. 2020 was $83.7 Mil. Therefore, Ossen Innovation Co's Operating Margin % for the quarter that ended in Dec. 2020 was 10.23%.

Good Sign:

Ossen Innovation Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

Ossen Innovation Co's 5-Year average Growth Rate for Operating Margin % was 9.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Ossen Innovation Co's annualized ROC % for the quarter that ended in Dec. 2020 was 7.84%. Ossen Innovation Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2020 was 9.79%.

Ossen Innovation Co Operating Income Historical Data

The historical data trend for Ossen Innovation 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.

Ossen Innovation Co Operating Income Chart

Ossen Innovation Co Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Operating Income

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8.99

8.05

14.93

15.85

16.38

Ossen Innovation Co Semi-Annual Data
	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20
Operating Income	Get a 7-Day Free Trial															8.29	7.31	8.53	7.82	8.57

Ossen Innovation 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 Dec. 2020 adds up the semi-annually data reported by the company within the most recent 12 months, which was $16.4 Mil.

Ossen Innovation Co (NAS:OSN) Operating Income Explanation

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

Ossen Innovation Co's annualized ROC % for the quarter that ended in Dec. 2020 is calculated as:

	ROC % (Q: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2020 )	+	Invested Capital (Q: Dec. 2020 ))	/ count )
=	17.132 * ( 1 - 15.58% )	/	( (175.18	+	193.876)	/ 2 )
=	14.4628344	/	184.528
=	7.84 %

where

	Invested Capital		(Q: Jun. 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	))
=	186.696	-	10.062	-	( 1.454	-	max(0, 46.116	-	179.763	+	1.454	))
=	175.18

	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	))
=	203.305	-	8.2	-	( 1.229	-	max(0, 37.87	-	195.225	+	1.229	))
=	193.876

Note: The Operating Income data used here is two times the semi-annual (Dec. 2020) data.

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

Ossen Innovation Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2020 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2020 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2020		Q: Dec. 2020
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	17.214	/	( ( (2.688 + max(160.714, 0))	+	(3.336 + max(184.93, 0)) )	/	2 )
=	17.214	/	( ( 163.402	+	188.266 )	/	2 )
=	17.214	/	175.834
=	9.79 %

where Working Capital is:

	Working Capital		(Q: Jun. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(64.877	+	27.204	+	86.228)	-	(10.062	+	7.534	+	-0.00099999999999767)
=	160.714

	Working Capital		(Q: Dec. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(51.948	+	38.209	+	103.76)	-	(8.2	+	0.787	+	0)
=	184.93

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2020) EBIT data.

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

Ossen Innovation Co's Operating Margin % for the quarter that ended in Dec. 2020 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2020 )	/	Revenue (Q: Dec. 2020 )
	=	8.566	/	83.727
	=	10.23 %

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.

Ossen Innovation Co Operating Income Related Terms

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Ossen Innovation Co (Ossen Innovation Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Ossen Innovation Co Ltd (NAS:OSN) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

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Address

518 Shangcheng Road, Floor 17, Shanghai, CHN, 200120

Website

http://www.osseninnovation.com

Ossen Innovation Co Ltd designs, engineers, manufactures, and sells prestressed steel materials. The company's materials are used in the construction of bridges, highways and other infrastructure projects in the People's Republic of China and internationally. Its product is categorized as coated products and uncoated products. Its coated products include zinc, rare earth and plain surface prestressed concrete.It is used in the construction of new bridges and the renovation of older bridges. Uncoated products consist of wires that are twisted into a bundle and used in precast concrete plates on the riding surface of bridges. It is categorized based on size, strength, and structure.