CHNGQ (China Natural Gas) Operating Income: $18.1 Mil (TTM As of Sep. 2013)

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What is China Natural Gas Operating Income?

China Natural Gas CHNGQ -95.00% Operating Income is $18.1 Mil as of Sep. 2013.

China Natural Gas's Operating Income for the three months ended in Sep. 2013 was $1.4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2013 was $18.1 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. China Natural Gas's Operating Income for the three months ended in Sep. 2013 was $1.4 Mil. China Natural Gas's Revenue for the three months ended in Sep. 2013 was $32.0 Mil. Therefore, China Natural Gas's Operating Margin % for the quarter that ended in Sep. 2013 was 4.31%.

China Natural Gas'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. China Natural Gas's annualized ROC % for the quarter that ended in Sep. 2013 was 1.03%. China Natural Gas's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2013 was 2.17%.

China Natural Gas  (OTCPK:CHNGQ) Operating Income Explanation

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

China Natural Gas'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 )
=5.528 * ( 1 - 36.95% )/( (337.777 + 341.788)/ 2 )
=3.485404/339.7825
=1.03 %

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))
=299.496 - 14.437 - ( 7.386 - max(0, 79.23 - 26.512+7.386))
=337.777

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))
=307.497 - 17.36 - ( 10.334 - max(0, 84.14 - 32.489+10.334))
=341.788

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

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

China Natural Gas'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 )
=5.304/( ( (243.355 + max(-17.453, 0)) + (245.505 + max(-18.533, 0)) )/ 2 )
=5.304/( ( 243.355 + 245.505 )/ 2 )
=5.304/244.43
=2.17 %

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)
=(2.581 + 2.917 + 12.269) - (14.437 + 3.283 + 17.5)
=-17.453

Working Capital(Q: Sep. 2013 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2.715 + 3.012 + 16.082) - (17.36 + 5.482 + 17.5)
=-18.533

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 %:

China Natural Gas'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 )
=1.382/32.031
=4.31 %

* 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.

China Natural Gas Operating Income Related Terms

China Natural Gas Operating Income Historical Data

* Premium members only.

The historical data trend for China Natural Gas'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.

China Natural Gas Operating Income Chart

China Natural Gas Annual Data
Trend Jul03 Jul04 Jul05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.06 25.05 19.03 20.86 19.81

China Natural Gas 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.72 6.82 5.84 4.04 1.38

China Natural Gas 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 $18.1 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 $18.1 Mil mean?
China Natural Gas (CHNGQ) has a Operating Income of $18.1 Mil as of Sep. 2013. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on China Natural Gas and its competitors.
Is China Natural Gas' Operating Income too high?
China Natural Gas' current Operating Income is $18.1 Mil.
How does China Natural Gas' Operating Income compare to SXEEQ and CNIG?
China Natural Gas' Operating Income of $18.1 Mil can be compared against companies in the Utilities - Regulated 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 Utilities - Regulated company?
A good Operating Income depends on the Utilities - Regulated 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 China Natural Gas and its competitors. China Natural Gas's current Operating Income is $18.1 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Natural Gas stock overvalued right now?
China Natural Gas (CHNGQ) has a current Operating Income of $18.1 Mil. The current Operating Income is $18.1 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 China Natural Gas (CHNGQ), the current Operating Income is $18.1 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.

China Natural Gas Business Description

Address 35 Tang Yan Road, 19th Floor Building B, Van Metropolis, Hi-Tech Zone, Shaanxi Province, Xian, CHN, 710065
China Natural Gas Inc through its subsidiaries engages in sales & distribution of natural gas and gasoline to commercial, industrial & residential customers, construction of pipeline networks, installation of natural gas fittings & parts for end-users.