Imperial Oil (TSX:IMO) Operating Income

: C$6,171 Mil (TTM As of Dec. 2023)

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Imperial Oil's Operating Income for the three months ended in Dec. 2023 was C$1,657 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was C$6,171 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Imperial Oil's Operating Income for the three months ended in Dec. 2023 was C$1,657 Mil. Imperial Oil's Revenue for the three months ended in Dec. 2023 was C$12,387 Mil. Therefore, Imperial Oil's Operating Margin % for the quarter that ended in Dec. 2023 was 13.38%.

Imperial Oil'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. Imperial Oil's annualized ROC % for the quarter that ended in Dec. 2023 was 15.32%. Imperial Oil's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 22.45%.

Imperial Oil Operating Income Historical Data

The historical data trend for Imperial Oil'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.

Imperial Oil Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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2,040.00

-2,448.00

3,255.00

9,287.00

6,171.00

Imperial Oil 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															2,252.00	1,597.00	845.00	2,072.00	1,657.00

Imperial Oil 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 C$6,171 Mil.

Imperial Oil (TSX:IMO) Operating Income Explanation

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

Imperial Oil'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 )
=	6628 * ( 1 - 21.55% )	/	( (33218	+	34666)	/ 2 )
=	5199.666	/	33942
=	15.32 %

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	))
=	43586	-	7652	-	( 2716	-	max(0, 7773	-	10760	+	2716	))
=	33218

	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	))
=	41199	-	5669	-	( 864	-	max(0, 6603	-	8298	+	864	))
=	34666

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

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

Imperial Oil'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 )
=	7032	/	( ( (30381 + max(392, 0))	+	(30835 + max(1039, 0)) )	/	2 )
=	7032	/	( ( 30773	+	31874 )	/	2 )
=	7032	/	31323.5
=	22.45 %

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)
=	(5390	+	2654	+	0)	-	(7652	+	0	+	0)
=	392

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(4482	+	2952	+	0)	-	(5669	+	0	+	726)
=	1039

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 %:

Imperial Oil'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 )
	=	1657	/	12387
	=	13.38 %

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.

Imperial Oil Operating Income Related Terms

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Imperial Oil (TSX:IMO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Imperial Oil Ltd (TSX:IMO) » Definitions » Operating Income

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IMO:USA IMP:Germany

Address

505 Quarry Park Boulevard S.E, Calgary, AB, CAN, T2C 5N1

Website

https://www.imperialoil.ca

Imperial Oil is one of Canada's largest integrated oil companies, focusing on upstream operations, petroleum refining operations, and the marketing of petroleum products. Production averaged 398 thousand barrels of oil equivalent per day in 2020. The company estimates that it holds 5.2 billion boe of proved and probable crude oil and natural gas reserves. Imperial remains the largest refiner of petroleum products in Canada, operating three refineries with a combined processing capacity of 421 mboe/d. The Upstream segment operates to produce crude oil and its equivalent, and natural gas. The Downstream segment operates to refine crude oil into petroleum products. The Chemical segment manufactures hydrocarbon-based chemicals and chemical products.