Continental Coal (ASX:CCC) Operating Income: A$-8.93 Mil (TTM As of Jun. 2014)


What is Continental Coal Operating Income?

Continental Coal ASX:CCC Operating Income is A$-8.93 Mil as of Jun. 2014. The stock has 4 warning signs investors should review.

Continental Coal's Operating Income for the six months ended in Jun. 2014 was A$-7.95 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was A$-8.93 Mil.

Warning Sign:

Continental Coal Ltd had operating loss over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Continental Coal's Operating Income for the six months ended in Jun. 2014 was A$-7.95 Mil. Continental Coal's Revenue for the six months ended in Jun. 2014 was A$30.11 Mil. Therefore, Continental Coal's Operating Margin % for the quarter that ended in Jun. 2014 was -26.42%.

Continental Coal'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. Continental Coal's annualized ROC % for the quarter that ended in Jun. 2014 was -6.33%. Continental Coal's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2014 was -267.29%.

Continental Coal  (ASX:CCC) Operating Income Explanation

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

Continental Coal's annualized ROC % for the quarter that ended in Jun. 2014 is calculated as:

ROC % (Q: Jun. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2013 ) + Invested Capital (Q: Jun. 2014 ))/ count )
=-15.908 * ( 1 - 6.03% )/( (246.201 + 225.935)/ 2 )
=-14.9487476/236.068
=-6.33 %

where

Invested Capital(Q: Dec. 2013 )
=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))
=159.514 - 11.812 - ( 3.948 - max(0, 111.876 - 13.377+3.948))
=246.201

Invested Capital(Q: Jun. 2014 )
=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))
=149.899 - 11.214 - ( 3.619 - max(0, 96.562 - 9.312+3.619))
=225.935

Note: The Operating Income data used here is two times the semi-annual (Jun. 2014) data.

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

Continental Coal's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2014 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2014 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2013  Q: Jun. 2014
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-35.152/( ( (12.511 + max(-20.81, 0)) + (13.792 + max(-22.338, 0)) )/ 2 )
=-35.152/( ( 12.511 + 13.792 )/ 2 )
=-35.152/13.1515
=-267.29 %

where Working Capital is:

Working Capital(Q: Dec. 2013 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 3.19 + 0) - (11.812 + 0 + 12.188)
=-20.81

Working Capital(Q: Jun. 2014 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.996 + 1.166 + 0.471) - (11.214 + 0.053 + 15.704)
=-22.338

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2014) EBIT data.

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

Continental Coal's Operating Margin % for the quarter that ended in Jun. 2014 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2014 )/Revenue (Q: Jun. 2014 )
=-7.954/30.109
=-26.42 %

* 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.

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.

Continental Coal Operating Income Related Terms

Continental Coal Operating Income Historical Data

* Premium members only.

The historical data trend for Continental Coal'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.

Continental Coal Operating Income Chart

Continental Coal Annual Data
Trend Jun11 Jun12 Jun13 Jun14
Operating Income
-21.72 -31.05 -35.55 -8.93

Continental Coal Semi-Annual Data
Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14
Operating Income Get a 7-Day Free Trial -25.04 -0.88 -34.67 -0.97 -7.95

Continental Coal 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. 2014 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$-8.93 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of A$-8.93 Mil mean?
Continental Coal (ASX:CCC) has a Operating Income of A$-8.93 Mil as of Jun. 2014. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Continental Coal and its competitors.
Is Continental Coal's Operating Income too high?
Continental Coal's current Operating Income is A$-8.93 Mil.
How does Continental Coal's Operating Income compare to competitors?
Continental Coal's Operating Income of A$-8.93 Mil can be compared against companies in the Steel industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Steel company?
A good Operating Income depends on the Steel industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Continental Coal and its competitors. Continental Coal's current Operating Income is A$-8.93 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Continental Coal stock overvalued right now?
Continental Coal (ASX:CCC) has a current Operating Income of A$-8.93 Mil. The current Operating Income is A$-8.93 Mil. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Continental Coal (ASX:CCC), the current Operating Income is A$-8.93 Mil as of Jun. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Continental Coal Business Description

Address 9th Floor, Fredman Towers, 13 Fredman Drive, Sandton, ZAF, 2196
Continental Coal Ltd is a coal exploration and development company. It is engaged in producing, development and exploration of coal in its projects located in South Africa's coal fields. Its three main operating mines are Vlakvarkfontein, Ferreira and Penumbra mine. Its development projects include De Wittekrans development project; and exploration projects, such as Vaalbank, Leiden and Knapdaar in South Africa, as well as Kweneng and Serowe exploration projects in Botswana.