Sail Mining Group (JSE:SGP) Operating Income: R-521 Mil (TTM As of Aug. 2021)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Sail Mining Group Operating Income?

Sail Mining Group JSE:SGP Operating Income is R-521 Mil as of Aug. 2021.

Sail Mining Group's Operating Income for the six months ended in Aug. 2021 was R-294 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2021 was R-521 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Sail Mining Group's Operating Income for the six months ended in Aug. 2021 was R-294 Mil. Sail Mining Group's Revenue for the six months ended in Aug. 2021 was R395 Mil. Therefore, Sail Mining Group's Operating Margin % for the quarter that ended in Aug. 2021 was -74.52%.

Sail Mining 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. Sail Mining Group's annualized ROC % for the quarter that ended in Aug. 2021 was -31.63%. Sail Mining Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2021 was -82.78%.

Sail Mining Group  (JSE:SGP) Operating Income Explanation

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

Sail Mining Group's annualized ROC % for the quarter that ended in Aug. 2021 is calculated as:

ROC % (Q: Aug. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2021 ) + Invested Capital (Q: Aug. 2021 ))/ count )
=-588.554 * ( 1 - 10.86% )/( (1665.989 + 1651.316)/ 2 )
=-524.6370356/1658.6525
=-31.63 %

where

Invested Capital(Q: Feb. 2021 )
=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))
=1601.418 - 475.728 - ( 0.145 - max(0, 994.107 - 453.808+0.145))
=1665.989

Invested Capital(Q: Aug. 2021 )
=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))
=1203.237 - 474.232 - ( 4.035 - max(0, 1214.533 - 292.222+4.035))
=1651.316

Note: The Operating Income data used here is two times the semi-annual (Aug. 2021) data.

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

Sail Mining Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Aug. 2021 is calculated as:

ROC (Joel Greenblatt) %(Q: Aug. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Feb. 2021  Q: Aug. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-785.646/( ( (1081.383 + max(-74.227, 0)) + (816.752 + max(-495.599, 0)) )/ 2 )
=-785.646/( ( 1081.383 + 816.752 )/ 2 )
=-785.646/949.0675
=-82.78 %

where Working Capital is:

Working Capital(Q: Feb. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(70.296 + 202.235 + 164.514) - (475.728 + 0 + 35.544)
=-74.227

Working Capital(Q: Aug. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(80.986 + 131.413 + 75.788) - (474.232 + 0 + 309.554)
=-495.599

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Aug. 2021) EBIT data.

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

Sail Mining Group's Operating Margin % for the quarter that ended in Aug. 2021 is calculated as:

Operating Margin %=Operating Income (Q: Aug. 2021 )/Revenue (Q: Aug. 2021 )
=-294.277/394.908
=-74.52 %

* 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.

Sail Mining Group Operating Income Related Terms

Sail Mining Group Operating Income Historical Data

* Premium members only.

The historical data trend for Sail Mining 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.

Sail Mining Group Operating Income Chart

Sail Mining Group Annual Data
Trend Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -12.02 -2.53 6.40 -34.66 -340.98

Sail Mining Group Semi-Annual Data
Feb12 Aug12 Feb13 Aug13 Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21
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 -23.87 -10.79 -114.74 -226.24 -294.28

Sail Mining 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.

Operating Income for the trailing twelve months (TTM) ended in Aug. 2021 adds up the semi-annually data reported by the company within the most recent 12 months, which was R-521 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 R-521 Mil mean?
Sail Mining Group (JSE:SGP) has a Operating Income of R-521 Mil as of Aug. 2021. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Sail Mining Group and its competitors.
Is Sail Mining Group's Operating Income too high?
Sail Mining Group's current Operating Income is R-521 Mil.
How does Sail Mining Group's Operating Income compare to BHPBF?
Sail Mining Group's Operating Income of R-521 Mil can be compared against companies in the Metals & Mining 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 Metals & Mining company?
A good Operating Income depends on the Metals & Mining 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 Sail Mining Group and its competitors. Sail Mining Group's current Operating Income is R-521 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sail Mining Group stock overvalued right now?
Sail Mining Group (JSE:SGP) has a current Operating Income of R-521 Mil. The current Operating Income is R-521 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 Sail Mining Group (JSE:SGP), the current Operating Income is R-521 Mil as of Aug. 2021. 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.

Sail Mining Group Business Description

Address 4 Peltier Drive, Unit 25 Sunninghill Office Park, Johannesburg, GT, ZAF, 2054
Sail Mining Group Ltd Formerly Chrometco Ltd is a mineral exploration company. It has chrome and mining operations in the North-West Province of South Africa. In addition, Chrometco focuses on the investigation of other chrome and base metal properties for exploration purposes and on researching and investigating business development opportunities. The group holds interest in mining, concentrating and beneficiating various metals and their ores, in particular chrome, platinum, copper, cobalt, nickel and manganese.