Lithium Energy (ASX:LEL) Operating Income : A$-4.12 Mil (TTM As of Dec. 2023)

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What is Lithium Energy Operating Income?

Lithium Energy's Operating Income for the six months ended in Dec. 2023 was A$-1.89 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was A$-4.12 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Lithium Energy's Operating Income for the six months ended in Dec. 2023 was A$-1.89 Mil. Lithium Energy's Revenue for the six months ended in Dec. 2023 was A$0.00 Mil. Therefore, Lithium Energy's Operating Margin % for the quarter that ended in Dec. 2023 was %.

Lithium Energy'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. Lithium Energy's annualized ROC % for the quarter that ended in Dec. 2023 was -14.08%. Lithium Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -7.69%.

Lithium Energy Operating Income Historical Data

The historical data trend for Lithium Energy'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.

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Lithium Energy Operating Income Chart

Lithium Energy Annual Data

Trend

Jun21

Jun22

Jun23

Jun24

Operating Income

-1.17

-2.41

-12.58

-4.12

Lithium Energy Semi-Annual Data
	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Operating Income	Get a 7-Day Free Trial			-0.64	-10.86	-1.72	-1.89	-2.23

Lithium Energy 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 semi-annually data reported by the company within the most recent 12 months, which was A$-4.12 Mil.

Lithium Energy (ASX:LEL) Operating Income Explanation

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

Lithium Energy'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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-3.78 * ( 1 - 0% )	/	( (23.307	+	30.4)	/ 2 )
=	-3.78	/	26.8535
=	-14.08 %

where

	Invested Capital		(Q: Jun. 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	))
=	33.32	-	1.144	-	( 9.436	-	max(0, 1.196	-	10.065	+	9.436	))
=	23.307

	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	))
=	32.857	-	0.346	-	( 2.363	-	max(0, 0.422	-	2.533	+	2.363	))
=	30.4

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

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

Lithium Energy'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: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-1.94	/	( ( (21.466 + max(-0.567, 0))	+	(29.016 + max(-0.252, 0)) )	/	2 )
=	-1.94	/	( ( 21.466	+	29.016 )	/	2 )
=	-1.94	/	25.241
=	-7.69 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.485	+	0	+	0.144)	-	(1.144	+	0	+	0.052)
=	-0.567

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.161	+	0	+	0.0089999999999999)	-	(0.346	+	0	+	0.076)
=	-0.252

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

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

Lithium Energy'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 )
	=	-1.89	/	0
	=	%

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.

Lithium Energy Operating Income Related Terms

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Lithium Energy Business Description

Industry

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Address

680 Murray Street, Suite 1, Level 1, West Perth, WA, AUS, 6005

Website

https://www.lithiumenergy.com.au

Lithium Energy Ltd is a battery minerals company with two exploration and development projects, the Solaroz Lithium Project in Argentina, which comprises of prospective lithium mineral concessions, and the Burke Graphite Project in Queensland, which contains a high-grade graphite deposit and presents an opportunity to participate in the anticipated growth in demand for graphite and graphite related products. The company derives the majority of its revenue from Argentina.

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