Terra Nitrogen Co LP (Terra Nitrogen Co LP) Operating Income : $153.4 Mil (TTM As of Dec. 2017)

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What is Terra Nitrogen Co LP Operating Income?

Terra Nitrogen Co LP's Operating Income for the three months ended in Dec. 2017 was $49.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2017 was $153.4 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Terra Nitrogen Co LP's Operating Income for the three months ended in Dec. 2017 was $49.1 Mil. Terra Nitrogen Co LP's Revenue for the three months ended in Dec. 2017 was $97.5 Mil. Therefore, Terra Nitrogen Co LP's Operating Margin % for the quarter that ended in Dec. 2017 was 50.36%.

Terra Nitrogen Co 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. Terra Nitrogen Co LP's annualized ROC % for the quarter that ended in Dec. 2017 was 65.21%. Terra Nitrogen Co LP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2017 was 67.97%.

Terra Nitrogen Co LP Operating Income Historical Data

The historical data trend for Terra Nitrogen Co 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.

Terra Nitrogen Co LP Operating Income Chart

Terra Nitrogen Co LP Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Operating Income

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502.40

370.00

306.90

209.20

153.40

Terra Nitrogen Co LP Quarterly Data
	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17
Operating Income	Get a 7-Day Free Trial															44.10	42.20	39.40	22.70	49.10

Terra Nitrogen Co 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. 2017 adds up the quarterly data reported by the company within the most recent 12 months, which was $153.4 Mil.

Terra Nitrogen Co LP (NYSE:TNH) Operating Income Explanation

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

Terra Nitrogen Co LP's annualized ROC % for the quarter that ended in Dec. 2017 is calculated as:

	ROC % (Q: Dec. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2017 )	+	Invested Capital (Q: Dec. 2017 ))	/ count )
=	196.4 * ( 1 - 0% )	/	( (300.4	+	302)	/ 2 )
=	196.4	/	301.2
=	65.21 %

where

	Invested Capital		(Q: Sep. 2017 )
=	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	))
=	382	-	26.1	-	( 60.8	-	max(0, 28.3	-	83.8	+	60.8	))
=	300.4

	Invested Capital		(Q: Dec. 2017 )
=	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	))
=	403.9	-	31.6	-	( 81.5	-	max(0, 34.8	-	105.1	+	81.5	))
=	302

Note: The Operating Income data used here is four times the quarterly (Dec. 2017) data.

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

Terra Nitrogen Co LP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2017 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2017 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2017		Q: Dec. 2017
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	196.4	/	( ( (287.7 + max(-21.6, 0))	+	(290.2 + max(-28.3, 0)) )	/	2 )
=	196.4	/	( ( 287.7	+	290.2 )	/	2 )
=	196.4	/	288.95
=	67.97 %

where Working Capital is:

	Working Capital		(Q: Sep. 2017 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.4	+	6	+	0.3)	-	(26.1	+	0	+	2.2)
=	-21.6

	Working Capital		(Q: Dec. 2017 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.9	+	5.3	+	0.3)	-	(31.6	+	0	+	3.2)
=	-28.3

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2017) EBIT data.

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

Terra Nitrogen Co LP's Operating Margin % for the quarter that ended in Dec. 2017 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2017 )	/	Revenue (Q: Dec. 2017 )
	=	49.1	/	97.5
	=	50.36 %

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.

Terra Nitrogen Co LP Operating Income Related Terms

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Terra Nitrogen Co LP (Terra Nitrogen Co LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Terra Nitrogen Co LP (NYSE:TNH) » Definitions » Operating Income

Traded in Other Exchanges

N/A

Address

Website

http://www.cfindustries.com

Terra Nitrogen Co LP is a limited partnership company producing nitrogen fertilizer products. Its principal products anhydrous ammonia and urea ammonium nitrate solutions are manufactured at its facility in Verdigris, Oklahoma. The company's operations are conducted through a partnership with Terra Nitrogen, Limited Partnership, and Terra Nitrogen GP Inc.

Executives

Michael A Jackson	director
Anne H Lloyd	director
Susan L Menzel	officer: Sr. VP, Human Resources	C/O CF INDUSTRIES HOLDINGS, INC., FOUR PARKWAY NORTH, DEERFIELD IL 60015
Christopher D Bohn	officer: VP, Supply Chain	C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015
Adam L Hall	officer: VP, Corporate Development	C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015
Dennis P. Kelleher	director, officer: Sr Vice President and CFO	C/O CF INDUSTRIES HOLDINGS, INC, 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015
Theodore D Sands	director	CITYPLACE ONE SUITE 300, ARCH MINERAL CORP, CREVE COEUR MO 63141
Jablow Spertus Wendy S	officer: VP, Human Resources	C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015
Anthony J Nocchiero	director, officer: Senior Vice President and CFO	C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015
Lynn F White	officer: VP, Corporate Development	C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015
Philipp P Koch	officer: VP, Supply Chain	C/O CF INDUSTRIES, INC., ONE SALEM LAKE DRIVE, LONG GROVE IL 60047
Stephen R Wilson	director, officer: Chairman, President, and CEO	C/O CF INDUSTRIES, INC., ONE SALEM LAKE DRIVE, LONG GROVE IL 60047
Douglas C Barnard	officer: VP, GC, and Corp. Secretary	C/O CF INDUSTRIES, INC., ONE SALEM LAKE DRIVE, LONG GROVE IL 60047
W Anthony Will	officer: VP, Manufacturing and Dist.	C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015
Richard A Hoker	officer: VP and Corporate Controller	C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015