DSG (Diamond S Shipping Group) Operating Income: $ Mil (TTM As of Mar. 2013)


What is Diamond S Shipping Group Operating Income?

Diamond S Shipping Group DSG Operating Income is $ Mil as of Mar. 2013. The stock has 1 warning sign investors should review.

Diamond S Shipping Group's Operating Income for the six months ended in Mar. 2013 was $44.38 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Diamond S Shipping Group's Operating Income for the six months ended in Mar. 2013 was $44.38 Mil. Diamond S Shipping Group's Revenue for the six months ended in Mar. 2013 was $175.87 Mil. Therefore, Diamond S Shipping Group's Operating Margin % for the quarter that ended in Mar. 2013 was 25.23%.

Diamond S Shipping Group'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. Diamond S Shipping Group's annualized ROC % for the quarter that ended in Mar. 2013 was 3.67%. Diamond S Shipping Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2013 was 4.26%.

Diamond S Shipping Group  (NYSE:DSG) Operating Income Explanation

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

Diamond S Shipping Group's annualized ROC % for the quarter that ended in Mar. 2013 is calculated as:

ROC % (Q: Mar. 2013 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2012 ) + Invested Capital (Q: Mar. 2013 ))/ count )
=44.381 * ( 1 - 0% )/( (1236.018 + 1184.364)/ 2 )
=44.381/1210.191
=3.67 %

where

Invested Capital(Q: Mar. 2012 )
=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))
=1225.534 - 10.965 - ( 49.514 - max(0, 81.354 - 59.905+49.514))
=1236.018

Invested Capital(Q: Mar. 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))
=1168.143 - 13.685 - ( 38.772 - max(0, 87.209 - 57.303+38.772))
=1184.364

Note: The Operating Income data used here is one times the annual (Mar. 2013) data.

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

Diamond S Shipping Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2013 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2013 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2012  Q: Mar. 2013
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=44.439/( ( (1064.619 + max(-13.541, 0)) + (1020.034 + max(-11.02, 0)) )/ 2 )
=44.439/( ( 1064.619 + 1020.034 )/ 2 )
=44.439/1042.3265
=4.26 %

where Working Capital is:

Working Capital(Q: Mar. 2012 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1.717 + 3.2 + 2.958) - (10.965 + 6.163 + 4.288)
=-13.541

Working Capital(Q: Mar. 2013 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(5.285 + 6.466 + 2.265) - (13.685 + 6.788 + 4.563)
=-11.02

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Mar. 2013) EBIT data.

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

Diamond S Shipping Group's Operating Margin % for the quarter that ended in Mar. 2013 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2013 )/Revenue (Q: Mar. 2013 )
=44.381/175.874
=25.23 %

* 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.

Diamond S Shipping Group Operating Income Related Terms

Diamond S Shipping Group Operating Income Historical Data

* Premium members only.

The historical data trend for Diamond S Shipping 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.

Diamond S Shipping Group Operating Income Chart

Diamond S Shipping Group Annual Data
Trend Mar12 Mar13
Operating Income
8.26 44.38

Diamond S Shipping Group Semi-Annual Data
Mar12 Mar13
Operating Income 8.26 44.38

Diamond S Shipping 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.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Mar. 2013 was $ 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 $ Mil mean?
Diamond S Shipping Group (DSG) has a Operating Income of $ Mil as of Mar. 2013. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Diamond S Shipping Group and its competitors.
Is Diamond S Shipping Group's Operating Income too high?
Diamond S Shipping Group's current Operating Income is $ Mil.
How does Diamond S Shipping Group's Operating Income compare to PRGNF and TEUFF?
Diamond S Shipping Group's Operating Income of $ Mil can be compared against companies in the Transportation 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 Transportation company?
A good Operating Income depends on the Transportation 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 Diamond S Shipping Group and its competitors. Diamond S Shipping Group's current Operating Income is $ Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamond S Shipping Group stock overvalued right now?
Diamond S Shipping Group (DSG) has a current Operating Income of $ Mil. The current Operating Income is $ 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 Diamond S Shipping Group (DSG), the current Operating Income is $ Mil as of Mar. 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.

Diamond S Shipping Group Business Description

Diamond S Shipping Group Inc, is incorporated in Marshall Islands on July 31, 2013. The Company provides seaborne transportation of refined petroleum and other products in the international shipping markets. The Company is the owners and operators of medium range, or MR, product tankers. The Company's fleet currently consists of 33 MR product tankers built at Korean and Japanese shipyards. The Company competes on basis of price, vessel location, size, age and condition of the vessel. The Company is subject to various international conventions, national, state and local laws and regulations in the countries in which its vessels may operate or are registered.