United States Oil and Gas (FRA:NG5B) Operating Income: €-0.24 Mil (TTM As of Sep. 2011)

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What is United States Oil and Gas Operating Income?

United States Oil and Gas FRA:NG5B Operating Income is €-0.24 Mil as of Sep. 2011.

United States Oil and Gas's Operating Income for the three months ended in Sep. 2011 was €-0.20 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2011 was €-0.24 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. United States Oil and Gas's Operating Income for the three months ended in Sep. 2011 was €-0.20 Mil. United States Oil and Gas's Revenue for the three months ended in Sep. 2011 was €1.21 Mil. Therefore, United States Oil and Gas's Operating Margin % for the quarter that ended in Sep. 2011 was -16.86%.

United States Oil and 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. United States Oil and Gas's annualized ROC % for the quarter that ended in Sep. 2011 was -18.57%. United States Oil and Gas's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2011 was -82.23%.

United States Oil and Gas  (FRA:NG5B) Operating Income Explanation

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

United States Oil and Gas's annualized ROC % for the quarter that ended in Sep. 2011 is calculated as:

ROC % (Q: Sep. 2011 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2011 ) + Invested Capital (Q: Sep. 2011 ))/ count )
=-0.816 * ( 1 - 0% )/( (4.529 + 4.261)/ 2 )
=-0.816/4.395
=-18.57 %

where

Invested Capital(Q: Jun. 2011 )
=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))
=5.17 - 0.959 - ( 0.03 - max(0, 2.497 - 2.179+0.03))
=4.529

Invested Capital(Q: Sep. 2011 )
=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))
=4.622 - 0.901 - ( 0.008 - max(0, 2.647 - 2.107+0.008))
=4.261

Note: The Operating Income data used here is four times the quarterly (Sep. 2011) data.

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

United States Oil and Gas's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2011 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2011 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2011  Q: Sep. 2011
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-1.104/( ( (0.614 + max(0.712, 0)) + (0.71 + max(0.649, 0)) )/ 2 )
=-1.104/( ( 1.326 + 1.359 )/ 2 )
=-1.104/1.3425
=-82.23 %

where Working Capital is:

Working Capital(Q: Jun. 2011 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1.453 + 0.273 + 0.423) - (0.959 + 0.447 + 0.031)
=0.712

Working Capital(Q: Sep. 2011 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1.434 + 0.334 + 0.331) - (0.901 + 0.481 + 0.068)
=0.649

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2011) EBIT data.

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

United States Oil and Gas's Operating Margin % for the quarter that ended in Sep. 2011 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2011 )/Revenue (Q: Sep. 2011 )
=-0.204/1.21
=-16.86 %

* 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.

United States Oil and Gas Operating Income Related Terms

United States Oil and Gas Operating Income Historical Data

* Premium members only.

The historical data trend for United States Oil and 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.

United States Oil and Gas Operating Income Chart

United States Oil and Gas Annual Data
Trend Dec09 Dec10
Operating Income
-0.49 -0.15

United States Oil and Gas Quarterly Data
Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.10 0.16 -0.12 -0.07 -0.20

United States Oil and 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. 2011 adds up the quarterly data reported by the company within the most recent 12 months, which was €-0.24 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 €-0.24 Mil mean?
United States Oil and Gas (FRA:NG5B) has a Operating Income of €-0.24 Mil as of Sep. 2011. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on United States Oil and Gas and its competitors.
Is United States Oil and Gas' Operating Income too high?
United States Oil and Gas' current Operating Income is €-0.24 Mil.
How does United States Oil and Gas' Operating Income compare to competitors?
United States Oil and Gas' Operating Income of €-0.24 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 United States Oil and Gas and its competitors. United States Oil and Gas's current Operating Income is €-0.24 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United States Oil and Gas stock overvalued right now?
United States Oil and Gas (FRA:NG5B) has a current Operating Income of €-0.24 Mil. The current Operating Income is €-0.24 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 United States Oil and Gas (FRA:NG5B), the current Operating Income is €-0.24 Mil as of Sep. 2011. 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.

United States Oil and Gas Business Description

Industry EnergyOil & Gas
United States Oil And Gas Corp was founded in April 2007. The Company identifies and attempts to acquire domestic oil and gas service companies that market and distribute refined fuels, distillates (which are liquid petroleum products that are burned in a furnace or boiler for the generation of heat or used in an engine for the generation of power) and propane to retail and wholesale customers and oversee the operations of the businesses it acquires. Its acquisition targets are small to mid-sized family-run companies. Oil and gas service companies typically purchase bulk fuel and propane from regional suppliers, then store, sell, and deliver the fuel and propane to local businesses, drillers, farms, wholesalers, and individuals.