SolarWorld AG (HAM:SWVK) Operating Income: €-113.7 Mil (TTM As of Dec. 2016)


What is SolarWorld AG Operating Income?

SolarWorld AG HAM:SWVK -20.89% Operating Income is €-113.7 Mil as of Dec. 2016.

SolarWorld AG's Operating Income for the three months ended in Dec. 2016 was €-84.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2016 was €-113.7 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. SolarWorld AG's Operating Income for the three months ended in Dec. 2016 was €-84.0 Mil. SolarWorld AG's Revenue for the three months ended in Dec. 2016 was €164.4 Mil. Therefore, SolarWorld AG's Operating Margin % for the quarter that ended in Dec. 2016 was -51.08%.

SolarWorld AG'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. SolarWorld AG's annualized ROC % for the quarter that ended in Dec. 2016 was -23.32%. SolarWorld AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2016 was -62.69%.

SolarWorld AG  (HAM:SWVK) Operating Income Explanation

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

SolarWorld AG's annualized ROC % for the quarter that ended in Dec. 2016 is calculated as:

ROC % (Q: Dec. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2016 ) + Invested Capital (Q: Dec. 2016 ))/ count )
=-335.896 * ( 1 - 60.45% )/( (615.799 + 523.465)/ 2 )
=-132.846868/569.632
=-23.32 %

where

Invested Capital(Q: Sep. 2016 )
=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))
=793.986 - 92.81 - ( 99.919 - max(0, 364.697 - 450.074+99.919))
=615.799

Invested Capital(Q: Dec. 2016 )
=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))
=686.943 - 53.548 - ( 109.93 - max(0, 194.537 - 376.439+109.93))
=523.465

Note: The Operating Income data used here is four times the quarterly (Dec. 2016) data.

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

SolarWorld AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2016 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2016 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2016  Q: Dec. 2016
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-282.116/( ( (310.821 + max(173.642, 0)) + (277.458 + max(138.165, 0)) )/ 2 )
=-282.116/( ( 484.463 + 415.623 )/ 2 )
=-282.116/450.043
=-62.69 %

where Working Capital is:

Working Capital(Q: Sep. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(102.647 + 226.348 + 0.94100000000003) - (92.81 + 0 + 63.484)
=173.642

Working Capital(Q: Dec. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(55.032 + 185.693 + 23.476) - (53.548 + 0 + 72.488)
=138.165

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2016) EBIT data.

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

SolarWorld AG's Operating Margin % for the quarter that ended in Dec. 2016 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2016 )/Revenue (Q: Dec. 2016 )
=-83.974/164.412
=-51.08 %

* 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.

SolarWorld AG Operating Income Related Terms

SolarWorld AG Operating Income Historical Data

* Premium members only.

The historical data trend for SolarWorld AG'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.

SolarWorld AG Operating Income Chart

SolarWorld AG Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -538.03 -110.25 86.00 -10.57 -113.66

SolarWorld AG Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
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 7.70 -9.70 4.54 -24.53 -83.97

SolarWorld AG 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 Dec. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was €-113.7 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 €-113.7 Mil mean?
SolarWorld AG (HAM:SWVK) has a Operating Income of €-113.7 Mil as of Dec. 2016. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on SolarWorld AG and its competitors.
Is SolarWorld AG's Operating Income too high?
SolarWorld AG's current Operating Income is €-113.7 Mil.
How does SolarWorld AG's Operating Income compare to SUNW and RGSE?
SolarWorld AG's Operating Income of €-113.7 Mil can be compared against companies in the Semiconductors 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 Semiconductors company?
A good Operating Income depends on the Semiconductors 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 SolarWorld AG and its competitors. SolarWorld AG's current Operating Income is €-113.7 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SolarWorld AG stock overvalued right now?
SolarWorld AG (HAM:SWVK) has a current Operating Income of €-113.7 Mil. The current Operating Income is €-113.7 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 SolarWorld AG (HAM:SWVK), the current Operating Income is €-113.7 Mil as of Dec. 2016. 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.

SolarWorld AG Business Description

Address Martin-Luther-King-Street 24, Bonn, DEU, 53175
SolarWorld AG is a manufacturer of solar power products. It also researches, develops, produces and recycles on all levels of the solar value-added chain. It also focuses on the production and international distribution of high-end solar energy facilities. The business operates through segments that include Production Germany, Production United States, Trade, and Others. The Trade segment generates maximum revenue for the company. Its product line consists of module and assembly kit, cells and wafers, power generation, and other revenue. The sales of module and assembly kit generate maximum revenue for the company.