Northern Tier Energy LP (Northern Tier Energy LP) Operating Income : $270 Mil (TTM As of Mar. 2016)

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What is Northern Tier Energy LP Operating Income?

Northern Tier Energy LP's Operating Income for the three months ended in Mar. 2016 was $22 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2016 was $270 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Northern Tier Energy LP's Operating Income for the three months ended in Mar. 2016 was $22 Mil. Northern Tier Energy LP's Revenue for the three months ended in Mar. 2016 was $604 Mil. Therefore, Northern Tier Energy LP's Operating Margin % for the quarter that ended in Mar. 2016 was 3.61%.

Northern Tier Energy LP'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. Northern Tier Energy LP's annualized ROC % for the quarter that ended in Mar. 2016 was 11.57%. Northern Tier Energy LP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2016 was 10.04%.

Northern Tier Energy LP Operating Income Historical Data

The historical data trend for Northern Tier Energy 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.

Northern Tier Energy LP Operating Income Chart

Northern Tier Energy LP Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Operating Income

422.60

571.00

238.70

275.30

368.10

Northern Tier Energy LP Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16
Operating Income	Get a 7-Day Free Trial															119.50	138.90	114.60	-5.30	21.80

Northern Tier Energy 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 Mar. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $270 Mil.

Northern Tier Energy LP (NYSE:NTI) Operating Income Explanation

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

Northern Tier Energy LP's annualized ROC % for the quarter that ended in Mar. 2016 is calculated as:

	ROC % (Q: Mar. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2015 )	+	Invested Capital (Q: Mar. 2016 ))	/ count )
=	87.2 * ( 1 - 3.92% )	/	( (703.2	+	745.1)	/ 2 )
=	83.78176	/	724.15
=	11.57 %

where

	Invested Capital		(Q: Dec. 2015 )
=	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	))
=	1137.3	-	363.2	-	( 70.9	-	max(0, 363.2	-	519.4	+	70.9	))
=	703.2

	Invested Capital		(Q: Mar. 2016 )
=	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	))
=	1149.4	-	369.3	-	( 35	-	max(0, 369.3	-	508.3	+	35	))
=	745.1

Note: The Operating Income data used here is four times the quarterly (Mar. 2016) data.

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

Northern Tier Energy LP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2016 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2016 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2015		Q: Mar. 2016
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	87.2	/	( ( (487.8 + max(438.4, 0))	+	(505.6 + max(306.1, 0)) )	/	2 )
=	87.2	/	( ( 926.2	+	811.7 )	/	2 )
=	87.2	/	868.95
=	10.04 %

where Working Capital is:

	Working Capital		(Q: Dec. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(186	+	241.2	+	21.3)	-	(363.2	+	0	+	-353.1)
=	438.4

	Working Capital		(Q: Mar. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	273.7	+	25.5)	-	(369.3	+	0	+	-376.2)
=	306.1

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2016) EBIT data.

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

Northern Tier Energy LP's Operating Margin % for the quarter that ended in Mar. 2016 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2016 )	/	Revenue (Q: Mar. 2016 )
	=	21.8	/	604.4
	=	3.61 %

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.

Northern Tier Energy LP Operating Income Related Terms

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

Northern Tier Energy LP (Northern Tier Energy LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Northern Tier Energy LP (NYSE:NTI) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.ntenergy.com

Northern Tier Energy LP was incorporated on October 21, 2011. Its an independent downstream energy limited partnership with refining, retail and pipeline operations that serves the PADD II region of the United States. The Company operate its assets in two business segments: the refining business and the retail business. Its refining segment consists of an 89,500 barrels per calendar day (96,500 barrels per stream day) refinery located in St. Paul Park, Minnesota. Its refinery's complexity allows to process a variety of light, heavy, sweet and sour crudes into higher value refined products. Its retail segment operated 164 convenience stores under the SuperAmerica brand and also supported 75 franchised convenience stores, which are also operated under the SuperAmerica brand. These convenience stores are located in Minnesota and Wisconsin and sell various grades of gasoline and diesel, tobacco products and immediately consumable items such as beverages, prepared food and a large variety of snacks and prepackaged items. It also own and operate SuperMom's Bakery, which prepares and distributes baked goods and other prepared food items for sale in its company-operated and franchised convenience stores and other third party locations. Crude oil is the principal raw material for the Company and the majority of the crude oil processed is delivered to the refinery through a pipeline that is owned by MPL, a related party. With respect to its wholesale gasoline and distillate sales and marketing, it compete directly with Koch Industries' Flint Hills Resources Refinery in Pine Bend, Minnesota, as well as the other refiners in the PADD II region and, to a lesser extent, U.S. and foreign refiners. Its retail competitors include Holiday and Kwik Trip.

Executives

David L Lamp	director, officer: President and CEO	C/O CVR ENERGY, INC., 2277 PLAZA DRIVE, SUITE 500, SUGAR LAND TX 77479
Thomas W Hofmann	director	FIVE RADNOR CORPORATE CENTER, SUITE 500, RADNOR PA 19087
Scott D Weaver	director	C/O WESTERN REFINING, INC., 6500 TROWBRIDGE DRIVE, EL PASO TX 79905
Melissa M Buhrig	officer: Exec VP, General Counsel & Sec	C/O CVR ENERGY, INC., 2277 PLAZA DRIVE, SUITE 500, SUGAR LAND TX 77479
Dan F Smith	director	1221 MCKINNEY STREET, SUITE 700, HOUSTON TX 77010
Western Refining, Inc.	director, 10 percent owner	539 SOUTH MAIN STREET, FINDLAY OH 45840-3229
Karen Berriman Davis	officer: Executive VP and CFO	123 WEST MILLS AVENUE, SUITE 200, EL PASO TX 79901
Scott D Josey	director	ONE BRIARLAKE PLAZA, SUITE 2000, 2000 WEST SAM HOUSTON PARKWAY SOUTH, HOUSTON TX 77042
David Bonderman	other: Former 10% Owner and Director	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
James G Coulter	other: Former 10% Owner and Director	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Bernard W Aronson	director
Tpg Advisors Vi, Inc.	other: Former 10% Owner and Director	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Tpg Group Holdings (sbs) Advisors, Inc.	director, 10 percent owner	C/O TPG GLOBAL, LLC, 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Michael G. Macdougall	director	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Eric Liaw	director	C/O TPG GLOBAL, LLC, 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102

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