Nighthawk Energy (LSE:HAWK) Operating Income: £0.46 Mil (TTM As of Jun. 2017)

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What is Nighthawk Energy Operating Income?

Nighthawk Energy LSE:HAWK Operating Income is £0.46 Mil as of Jun. 2017. The stock has 4 warning signs investors should review.

Nighthawk Energy's Operating Income for the six months ended in Jun. 2017 was £-0.32 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2017 was £0.46 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Nighthawk Energy's Operating Income for the six months ended in Jun. 2017 was £-0.32 Mil. Nighthawk Energy's Revenue for the six months ended in Jun. 2017 was £6.81 Mil. Therefore, Nighthawk Energy's Operating Margin % for the quarter that ended in Jun. 2017 was -4.76%.

Nighthawk Energy'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. Nighthawk Energy's annualized ROC % for the quarter that ended in Jun. 2017 was -1.44%. Nighthawk Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2017 was 2.34%.

Nighthawk Energy  (LSE:HAWK) Operating Income Explanation

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

Nighthawk Energy's annualized ROC % for the quarter that ended in Jun. 2017 is calculated as:

ROC % (Q: Jun. 2017 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2016 ) + Invested Capital (Q: Jun. 2017 ))/ count )
=-0.648 * ( 1 - 0% )/( (47.147 + 42.862)/ 2 )
=-0.648/45.0045
=-1.44 %

where

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))
=32.054 - 1.35 - ( 4.461 - max(0, 23.682 - 7.239+4.461))
=47.147

Invested Capital(Q: Jun. 2017 )
=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))
=29.721 - 3.819 - ( 2.426 - max(0, 21.782 - 4.822+2.426))
=42.862

Note: The Operating Income data used here is two times the semi-annual (Jun. 2017) data.

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

Nighthawk Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2017 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2017 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2016  Q: Jun. 2017
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=0.498/( ( (24.562 + max(-1.871, 0)) + (18.093 + max(-1.423, 0)) )/ 2 )
=0.498/( ( 24.562 + 18.093 )/ 2 )
=0.498/21.3275
=2.34 %

where Working Capital is:

Working Capital(Q: Dec. 2016 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1.105 + 0.63 + 1.043) - (1.35 + 0 + 3.299)
=-1.871

Working Capital(Q: Jun. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0.629 + 1.767) - (3.819 + 0 + 0)
=-1.423

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2017) EBIT data.

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

Nighthawk Energy's Operating Margin % for the quarter that ended in Jun. 2017 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2017 )/Revenue (Q: Jun. 2017 )
=-0.324/6.809
=-4.76 %

* 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.

Nighthawk Energy Operating Income Related Terms

Nighthawk Energy Operating Income Historical Data

* Premium members only.

The historical data trend for Nighthawk Energy'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.

Nighthawk Energy Operating Income Chart

Nighthawk Energy Annual Data
Trend Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Dec13 Dec14 Dec15 Dec16
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -21.84 6.23 0.11 6.59 2.01

Nighthawk Energy Semi-Annual Data
Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17
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 2.33 4.17 1.07 0.79 -0.32

Nighthawk Energy 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. 2017 adds up the semi-annually data reported by the company within the most recent 12 months, which was £0.46 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 £0.46 Mil mean?
Nighthawk Energy (LSE:HAWK) has a Operating Income of £0.46 Mil as of Jun. 2017. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Nighthawk Energy and its competitors.
Is Nighthawk Energy's Operating Income too high?
Nighthawk Energy's current Operating Income is £0.46 Mil.
How does Nighthawk Energy's Operating Income compare to FPPP and UNGS?
Nighthawk Energy's Operating Income of £0.46 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 Nighthawk Energy and its competitors. Nighthawk Energy's current Operating Income is £0.46 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nighthawk Energy stock overvalued right now?
Nighthawk Energy (LSE:HAWK) has a current Operating Income of £0.46 Mil. The current Operating Income is £0.46 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 Nighthawk Energy (LSE:HAWK), the current Operating Income is £0.46 Mil as of Jun. 2017. 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.

Nighthawk Energy Business Description

Industry EnergyOil & Gas
Address One London Wall, 6th Floor, London, GBR, EC2Y 5EB
Nighthawk Energy PLC is an independent exploration and production company that operates in the Eastern Colorado plains. The company through its subsidiaries are focused primarily on the exploration and development of oil-producing assets located in and around Lincoln County, Colorado, United States of America. It has only one operating segment: Production of, Exploration for, and Investment in Hydrocarbons. The company holds a working interest in and is the operator of Smoky Hill and Jolly Ranch projects. Its current projects span approximately 150,000 net acres across Lincoln, Elbert, and Washington Counties, Colorado.