FOMI (Formation Minerals) Operating Income: $-2.17 Mil (TTM As of Jan. 2025)

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What is Formation Minerals Operating Income?

Formation Minerals FOMI Operating Income is $-2.17 Mil as of Jan. 2025.

Formation Minerals's Operating Income for the three months ended in Jan. 2025 was $-0.37 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2025 was $-2.17 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Formation Minerals's Operating Income for the three months ended in Jan. 2025 was $-0.37 Mil. Formation Minerals's Revenue for the three months ended in Jan. 2025 was $0.07 Mil. Therefore, Formation Minerals's Operating Margin % for the quarter that ended in Jan. 2025 was -566.15%.

Formation Minerals'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. Formation Minerals's annualized ROC % for the quarter that ended in Jan. 2025 was -192.80%. Formation Minerals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2025 was -1,946.39%.

Formation Minerals  (OTCPK:FOMI) Operating Income Explanation

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

Formation Minerals's annualized ROC % for the quarter that ended in Jan. 2025 is calculated as:

ROC % (Q: Jan. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2024 ) + Invested Capital (Q: Jan. 2025 ))/ count )
=-1.472 * ( 1 - 0% )/( (0.465 + 1.062)/ 2 )
=-1.472/0.7635
=-192.80 %

where

Invested Capital(Q: Oct. 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))
=0.33 - 2.989 - ( 0.01 - max(0, 3.252 - 0.128+0.01))
=0.465

Invested Capital(Q: Jan. 2025 )
=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))
=0.372 - 3.471 - ( 0 - max(0, 4.346 - 0.185+0))
=1.062

Note: The Operating Income data used here is four times the quarterly (Jan. 2025) data.

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

Formation Minerals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Jan. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2024  Q: Jan. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-3.776/( ( (0.201 + max(-2.895, 0)) + (0.187 + max(-3.912, 0)) )/ 2 )
=-3.776/( ( 0.201 + 0.187 )/ 2 )
=-3.776/0.194
=-1,946.39 %

where Working Capital is:

Working Capital(Q: Oct. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.094 + 0 + -0.001) - (2.989 + 0 + -0.0010000000000003)
=-2.895

Working Capital(Q: Jan. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.134 + 0 + 0) - (3.471 + 0 + 0.575)
=-3.912

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jan. 2025) EBIT data.

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

Formation Minerals's Operating Margin % for the quarter that ended in Jan. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Jan. 2025 )/Revenue (Q: Jan. 2025 )
=-0.368/0.065
=-566.15 %

* 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.

Formation Minerals Operating Income Related Terms

Formation Minerals Operating Income Historical Data

* Premium members only.

The historical data trend for Formation Minerals'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.

Formation Minerals Operating Income Chart

Formation Minerals Annual Data
Trend Apr21 Apr22 Apr23 Apr24
Operating Income
-0.87 -1.04 -0.78 -1.16

Formation Minerals Quarterly Data
Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 -0.41 -0.12 -0.69 -1.00 -0.37

Formation Minerals 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 Jan. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $-2.17 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 $-2.17 Mil mean?
Formation Minerals (FOMI) has a Operating Income of $-2.17 Mil as of Jan. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Formation Minerals and its competitors.
Is Formation Minerals' Operating Income too high?
Formation Minerals' current Operating Income is $-2.17 Mil.
How does Formation Minerals' Operating Income compare to AVACF and COP?
Formation Minerals' Operating Income of $-2.17 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 Formation Minerals and its competitors. Formation Minerals's current Operating Income is $-2.17 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formation Minerals stock overvalued right now?
Formation Minerals (FOMI) has a current Operating Income of $-2.17 Mil. The current Operating Income is $-2.17 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 Formation Minerals (FOMI), the current Operating Income is $-2.17 Mil as of Jan. 2025. 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.

Formation Minerals Business Description

Industry EnergyOil & Gas
Address P.O. Box 67, Jacksboro, TX, USA, 76458
Formation Minerals Inc is engaged in the acquisition and management of high-growth oil and gas minerals and royalties in the U.S. basins. The company is focused on providing returns through asset growth generated by acquisitions and organic growth of properties. Its portfolio includes the DJ Basin of Colorado and Wyoming, the Haynesville Shale of Louisiana, the Delaware and Permian Basin of Texas, the Marcellus and Utica shales in West Virginia, and the Anadarko Basin in Oklahoma.