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Newton Resources (HKSE:01231) Operating Income : HK$15 Mil (TTM As of Jun. 2024)


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What is Newton Resources Operating Income?

Newton Resources's Operating Income for the six months ended in Jun. 2024 was HK$16 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was HK$15 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Newton Resources's Operating Income for the six months ended in Jun. 2024 was HK$16 Mil. Newton Resources's Revenue for the six months ended in Jun. 2024 was HK$1,365 Mil. Therefore, Newton Resources's Operating Margin % for the quarter that ended in Jun. 2024 was 1.18%.

Newton Resources'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. Newton Resources's annualized ROC % for the quarter that ended in Jun. 2024 was 11.92%. Newton Resources's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 was 2,673.21%.


Newton Resources Operating Income Historical Data

The historical data trend for Newton Resources'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.

* Premium members only.

Newton Resources Operating Income Chart

Newton Resources Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.36 20.11 4.13 -12.46 24.68

Newton Resources Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 6.62 -19.03 26.10 -1.34 16.16

Newton Resources 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 Jun. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$15 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.


Newton Resources  (HKSE:01231) Operating Income Explanation

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

Newton Resources's annualized ROC % for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=32.318 * ( 1 - 18.95% )/( (213.48 + 226.038)/ 2 )
=26.193739/219.759
=11.92 %

where

Invested Capital(Q: Dec. 2023 )
=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))
=852.619 - 479.405 - ( 292.969 - max(0, 615.678 - 775.412+292.969))
=213.48

Invested Capital(Q: Jun. 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))
=578.534 - 193.438 - ( 159.058 - max(0, 330.629 - 514.101+159.058))
=226.038

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

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

Newton Resources's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Jun. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=36.222/( ( (1.851 + max(-286.229, 0)) + (0.859 + max(-48.055, 0)) )/ 2 )
=36.222/( ( 1.851 + 0.859 )/ 2 )
=36.222/1.355
=2,673.21 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(214.965 + 0 + 0) - (479.405 + 0 + 21.789)
=-286.229

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(91.744 + 0 + 85.457) - (193.438 + 0 + 31.818)
=-48.055

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2024) EBIT data.

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

Newton Resources's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2024 )/Revenue (Q: Jun. 2024 )
=16.159/1364.852
=1.18 %

* 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.


Newton Resources Operating Income Related Terms

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Newton Resources Business Description

Traded in Other Exchanges
N/A
Address
248 Queen's Road East, Units 4204-05, 42/Floor, Dah Sing Financial Centre, Wan Chai, HKG
Newton Resources Ltd is engaged in the trading of iron ore and other commodities. The company recognized revenue derived from sales of iron ore products and other commodities from Mainland China which derives key revenue, and other countries.
Executives
Cheng Yu Tung Family (holdings Ii) Limited 2201 Interest of corporation controlled by you
Cheng Yu Tung Family (holdings) Limited 2201 Interest of corporation controlled by you
Chow Tai Fook (holding) Limited 2201 Interest of corporation controlled by you
Chow Tai Fook Capital Limited 2201 Interest of corporation controlled by you
Chow Tai Fook Enterprises Limited 2201 Interest of corporation controlled by you
Century Acquisition Limited 2201 Interest of corporation controlled by you
Nws Holdings Limited 2201 Interest of corporation controlled by you
New World Development Company Limited 2201 Interest of corporation controlled by you
Faithful Boom Investments Limited 2101 Beneficial owner
Modern Global Holdings Limited 2201 Interest of corporation controlled by you
Nws Mining Limited 2201 Interest of corporation controlled by you
Nws Resources Limited 2201 Interest of corporation controlled by you
Perfect Move Limited 2201 Interest of corporation controlled by you
Vms Investment Group Limited 2101 Beneficial owner
Fast Fortune Holdings Limited 2101 Beneficial owner

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