Questar (Questar) Operating Income : $352 Mil (TTM As of Jun. 2016)

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What is Questar Operating Income?

Questar's Operating Income for the three months ended in Jun. 2016 was $64 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2016 was $352 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Questar's Operating Income for the three months ended in Jun. 2016 was $64 Mil. Questar's Revenue for the three months ended in Jun. 2016 was $174 Mil. Therefore, Questar's Operating Margin % for the quarter that ended in Jun. 2016 was 36.99%.

Questar'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. Questar's annualized ROC % for the quarter that ended in Jun. 2016 was 3.75%. Questar's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2016 was 6.85%.

Questar Operating Income Historical Data

The historical data trend for Questar'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.

Questar Operating Income Chart

Questar Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Operating Income

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366.90

375.70

305.80

405.40

374.40

Questar Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
Operating Income	Get a 7-Day Free Trial															75.30	62.30	89.80	135.70	64.40

Questar 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. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $352 Mil.

Questar (NYSE:STR) Operating Income Explanation

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

Questar's annualized ROC % for the quarter that ended in Jun. 2016 is calculated as:

	ROC % (Q: Jun. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2016 )	+	Invested Capital (Q: Jun. 2016 ))	/ count )
=	257.6 * ( 1 - 34.97% )	/	( (4467.9	+	4476.5)	/ 2 )
=	167.51728	/	4472.2
=	3.75 %

where

	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	))
=	4179.2	-	177.2	-	( 0.4	-	max(0, 700.5	-	234.6	+	0.4	))
=	4467.9

	Invested Capital		(Q: Jun. 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	))
=	4140.6	-	159.7	-	( 0	-	max(0, 658.2	-	162.6	+	0	))
=	4476.5

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

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

Questar's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2016 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2016 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2016		Q: Jun. 2016
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	265.6	/	( ( (3860.5 + max(-65.3, 0))	+	(3889.2 + max(-46.3, 0)) )	/	2 )
=	265.6	/	( ( 3860.5	+	3889.2 )	/	2 )
=	265.6	/	3874.85
=	6.85 %

where Working Capital is:

	Working Capital		(Q: Mar. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(107.1	+	39.7	+	28.7)	-	(177.2	+	0	+	63.6)
=	-65.3

	Working Capital		(Q: Jun. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(56.6	+	54	+	41)	-	(159.7	+	0	+	38.2)
=	-46.3

When net working capital is negative, 0 is used.

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

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

Questar's Operating Margin % for the quarter that ended in Jun. 2016 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2016 )	/	Revenue (Q: Jun. 2016 )
	=	64.4	/	174.1
	=	36.99 %

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.

Questar Operating Income Related Terms

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

Questar (Questar) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Questar Corp (NYSE:STR) » Definitions » Operating Income

Comparable Companies

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Address

Website

http://www.questar.com

Questar Corporation is an integrated natural gas holding company with three lines of business operated through wholly owned subsidiaries: Wexpro Company, Questar Pipeline and Questar Gas. Questar Gas distributes natural gas as a public utility in Utah, southwestern Wyoming and a small portion of southeastern Idaho. Questar Gas has the necessary regulatory approvals to serve the areas and has long-term franchises granted by communities and counties within its service area. Questar Gas currently does not face direct competition from other distributors of natural gas for residential and commercial customers in its service territory. Wexpro develops, produces and delivers natural gas from cost-of-service reserves for gas utility affiliate Questar Gas under the terms of the Wexpro Agreement and the Wexpro II Agreement (Wexpro agreements), comprehensive agreements with the states of Utah and Wyoming. Wexpro delivers natural gas production to Questar Gas at cost of service. Wexpro's properties are located in the Rocky Mountain region, in the Vermillion, Pinedale, Moxa Arch, and Uinta Basin producing fields. Wexpro faces competition in its business, including the marketing of oil and NGL, and obtaining goods, services and labor. Questar Pipeline provides natural gas transportation and underground-storage services in Utah, Wyoming and Colorado. Questar Pipeline and its subsidiaries operate 2,667 miles of interstate pipeline, including 10 miles owned by a third party. Questar Pipeline's core transportation system is strategically located near large reserves of natural gas in six Rocky Mountain producing areas. Questar Pipeline transports natural gas from these producing areas to other pipeline systems, Questar Gas's distribution system and other utility systems. In addition to this core system, Questar Pipeline, through wholly-owned subsidiaries, owns and operates the Overthrust Pipeline in southwestern Wyoming and the eastern segment of Southern Trails Pipeline, a 487-mile line that extends from the Blanco hub in New Mexico's San Juan Basin to just inside the California state line near the Arizona border. An additional 96miles of Southern Trails Pipeline in California is not in service.

Executives

Harris H Simmons	director	ZIONS BANCORPORATION, ONE MAIN STREET, SUITE 1134, SALT LAKE CITY UT 84111
Laurence M Downes	director	C/O NEW JERSEY RESOURCES CORPORATION, 1415 WYCKOFF ROAD, WALL NJ 07719
Ron W Jibson	officer: President & CEO	180 EAST 100 SOUTH, P.O. BOX 45360, SALT LAKE CITY UT 84145-0433
Rebecca Ranich	director	333 S STATE STREET, SALT LAKE CITY UT 84145-0433
Micheal G. Dunn	officer: EVP & President, QPC	333 SOUTH STATE STREET, 333 SOUTH STATE STREET UT 84145-0433
Christopher A Helms	director	MPLX LP, 200 E. HARDIN STREET, FINDLAY OH 45840
Teresa Beck	director	1681 SOUTH MOHAWK WAY, SALT LAKE CITY UT 84108
J T Mcmanus	director	605 RICHARD ARRINGTON JR BLVD N, BIRMINGHAM AL 35203-2707
Bruce A Williamson	director	C/O SOUTHCROSS ENERGY PARTNERS, L.P., 1717 MAIN STREET, SUITE 5200, DALLAS TX 75201
R D Cash	director	5201 18TH PLACE, LUBBOCK TX 79416
Keith O Rattie	director	180 EAST 100 SOUTH, SALT LAKE CITY UT 84111
Gary G Michael	director	P. O. BOX 1718, BOISE ID 83701
L Richard Flury	director	2000 W SAM HOUSTON PKWY S, SUITE 2000, HOUSTON TX 77042
Mckee Robert E Iii	director	14927 SANDALFOOT, HOUSTON TX 77095
Charles B Stanley	director, officer: EVP / COO	6500 NORTH MINERAL DRIVE, COEUR D'ALENE ID 83815-9408