CHFFY (China Everbright Environment Group) Operating Income : $1,389 Mil (TTM As of Jun. 2024)

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What is China Everbright Environment Group Operating Income?

China Everbright Environment Group's Operating Income for the six months ended in Jun. 2024 was $697 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was $1,389 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. China Everbright Environment Group's Operating Income for the six months ended in Jun. 2024 was $697 Mil. China Everbright Environment Group's Revenue for the six months ended in Jun. 2024 was $1,999 Mil. Therefore, China Everbright Environment Group's Operating Margin % for the quarter that ended in Jun. 2024 was 34.86%.

Good Sign:

China Everbright Environment Group Ltd operating margin is expanding. Margin expansion is usually a good sign.

China Everbright Environment Group's 5-Year average Growth Rate for Operating Margin % was 4.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. China Everbright Environment Group's annualized ROC % for the quarter that ended in Jun. 2024 was 5.10%. China Everbright Environment Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was 78.45%.

China Everbright Environment Group Operating Income Historical Data

The historical data trend for China Everbright Environment Group'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.

China Everbright Environment Group Operating Income Chart

China Everbright Environment Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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1,239.51

1,542.26

1,758.15

1,504.41

1,484.78

China Everbright Environment Group Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Operating Income	Get a 7-Day Free Trial															753.90	744.44	790.50	691.93	696.78

China Everbright Environment Group 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. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was $1,389 Mil.

China Everbright Environment Group (OTCPK:CHFFY) Operating Income Explanation

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

China Everbright Environment Group's annualized ROC % for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	1393.55 * ( 1 - 22.69% )	/	( (21146.264	+	21126.895)	/ 2 )
=	1077.353505	/	21136.5795
=	5.10 %

where

	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	))
=	24223.773	-	2313.307	-	( 1098.262	-	max(0, 5273.487	-	6037.689	+	1098.262	))
=	21146.264

	Invested Capital		(Q: Jun. 2024 )
=	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	))
=	24257.746	-	2077.694	-	( 1053.157	-	max(0, 4407.793	-	6208.65	+	1053.157	))
=	21126.895

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

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

China Everbright Environment Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Jun. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1390.664	/	( ( (1137.26 + max(383.035, 0))	+	(1219.728 + max(805.514, 0)) )	/	2 )
=	1390.664	/	( ( 1520.295	+	2025.242 )	/	2 )
=	1390.664	/	1772.7685
=	78.45 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2558.365	+	114.552	+	23.424000000001)	-	(2313.307	+	0	+	-0.00099999999929423)
=	383.035

	Working Capital		(Q: Jun. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2740.344	+	130.498	+	12.366)	-	(2077.694	+	0	+	0)
=	805.514

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2024) EBIT data.

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

China Everbright Environment Group's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2024 )	/	Revenue (Q: Jun. 2024 )
	=	696.775	/	1998.993
	=	34.86 %

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.

China Everbright Environment Group Operating Income Related Terms

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China Everbright Environment Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » China Everbright Environment Group Ltd (OTCPK:CHFFY) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

CHFFF:USA 00257:Hong Kong CNE:Germany

Address

16 Harcourt Road, Room 2703, 27th Floor, Far East Finance Centre, Hong Kong, HKG

Website

https://www.cebenvironment.com

China Everbright Environment Group Ltd engages in construction and operation of environmental energy and water projects such as waste-to-energy plants, food and kitchen waste treatment projects, and sludge treatment and disposal projects. It also provides waste sorting, renewable resources utilization, and sanitation operation services. The company has several segments including Environmental energy project construction and operation, Greentech project construction and operation, Environmental water project construction and operation, and Others. Additionally, it also sells energy-saving streetlights.

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