CBMDF (CBM Asia Development) Operating Income: $-8.43 Mil (TTM As of Sep. 2013)

What is CBM Asia Development Operating Income?

CBM Asia Development CBMDF -90.00% Operating Income is $-8.43 Mil as of Sep. 2013.

CBM Asia Development's Operating Income for the three months ended in Sep. 2013 was $-1.10 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2013 was $-8.43 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. CBM Asia Development's Operating Income for the three months ended in Sep. 2013 was $-1.10 Mil. CBM Asia Development's Revenue for the three months ended in Sep. 2013 was $0.00 Mil. Therefore, CBM Asia Development's Operating Margin % for the quarter that ended in Sep. 2013 was %.

CBM Asia Development'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. CBM Asia Development's annualized ROC % for the quarter that ended in Sep. 2013 was -4,475.13%. CBM Asia Development's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2013 was -18,050.00%.

CBM Asia Development (OTCPK:CBMDF) Operating Income Explanation

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

CBM Asia Development's annualized ROC % for the quarter that ended in Sep. 2013 is calculated as:

	ROC % (Q: Sep. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2013 )	+	Invested Capital (Q: Sep. 2013 ))	/ count )
=	-4.408 * ( 1 - 0% )	/	( (0.126	+	0.071)	/ 2 )
=	-4.408	/	0.0985
=	-4,475.13 %

where

	Invested Capital		(Q: Jun. 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	))
=	1.461	-	2.048	-	( 0.111	-	max(0, 2.148	-	1.435	+	0.111	))
=	0.126

	Invested Capital		(Q: Sep. 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	))
=	1.605	-	1.926	-	( 0.336	-	max(0, 1.975	-	1.583	+	0.336	))
=	0.071

Note: The Operating Income data used here is four times the quarterly (Sep. 2013) data.

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

CBM Asia Development's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2013 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2013 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2013		Q: Sep. 2013
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-4.332	/	( ( (0.026 + max(-0.724, 0))	+	(0.022 + max(-0.679, 0)) )	/	2 )
=	-4.332	/	( ( 0.026	+	0.022 )	/	2 )
=	-4.332	/	0.024
=	-18,050.00 %

where Working Capital is:

	Working Capital		(Q: Jun. 2013 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.157	+	0	+	1.167)	-	(2.048	+	0	+	0)
=	-0.724

	Working Capital		(Q: Sep. 2013 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.16	+	0	+	1.087)	-	(1.926	+	0	+	2.2204460492503E-16)
=	-0.679

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2013) EBIT data.

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

CBM Asia Development's Operating Margin % for the quarter that ended in Sep. 2013 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2013 )	/	Revenue (Q: Sep. 2013 )
	=	-1.102	/	0
	=	%

* 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.

CBM Asia Development Operating Income Related Terms

CBM Asia Development Operating Income Historical Data

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The historical data trend for CBM Asia Development's Operating Income can be seen below:

CBM Asia Development Operating Income Chart

CBM Asia Development Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Operating Income

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-1.68

-2.50

-3.64

-9.24

-12.65

CBM Asia Development Quarterly Data
	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13
Operating Income	Get a 7-Day Free Trial															-2.12	-4.27	-1.63	-1.42	-1.10

CBM Asia Development 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 Sep. 2013 adds up the quarterly data reported by the company within the most recent 12 months, which was $-8.43 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of $-8.43 Mil mean?

CBM Asia Development (CBMDF) has a Operating Income of $-8.43 Mil as of Sep. 2013. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on CBM Asia Development and its competitors.

Is CBM Asia Development's Operating Income too high?

CBM Asia Development's current Operating Income is $-8.43 Mil.

How does CBM Asia Development's Operating Income compare to IFNY and EXNT?

CBM Asia Development's Operating Income of $-8.43 Mil can be compared against companies in the Oil & Gas 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 an Oil & Gas company?

A good Operating Income depends on the Oil & Gas 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 CBM Asia Development and its competitors. CBM Asia Development's current Operating Income is $-8.43 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is CBM Asia Development stock overvalued right now?

CBM Asia Development (CBMDF) has a current Operating Income of $-8.43 Mil. The current Operating Income is $-8.43 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 CBM Asia Development (CBMDF), the current Operating Income is $-8.43 Mil as of Sep. 2013. 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.

CBM Asia Development Business Description

Industry Energy Oil & Gas

Comparable Companies TSXV:RHC ASX:BNL TSXV:CDA LSE:CAB IFNY ASX:MMR XCNQ:BDR TSXV:ARH TSXV:OEC TSXV:PEI TSXV:SCD TSXV:SMB EXNT TSXV:SPK ASX:PGY ASX:DOR TSXV:MCM.A LSE:SRO ASX:JPR TSXV:KFG

Address 5626 Larch Street, Vancouver, BC, CAN, V6M 4E1

Website http://www.cbmasia.ca

CBM Asia Development Corp is engaged in the exploration and development of its interests in gas properties in Indonesia.