Mining Investments Resources (LSE:MIR) Operating Income: £-0.53 Mil (TTM As of Dec. 2013)

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What is Mining Investments Resources Operating Income?

Mining Investments Resources LSE:MIR Operating Income is £-0.53 Mil as of Dec. 2013. The stock has 2 warning signs investors should review.

Mining Investments Resources's Operating Income for the six months ended in Dec. 2013 was £-0.23 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was £-0.53 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Mining Investments Resources's Operating Income for the six months ended in Dec. 2013 was £-0.23 Mil. Mining Investments Resources's Revenue for the six months ended in Dec. 2013 was £0.00 Mil. Therefore, Mining Investments Resources's Operating Margin % for the quarter that ended in Dec. 2013 was -7,733.33%.

Mining Investments 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. Mining Investments Resources's annualized ROC % for the quarter that ended in Dec. 2013 was -324.48%. Mining Investments Resources's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2013 was %.

Mining Investments Resources  (LSE:MIR) Operating Income Explanation

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

Mining Investments Resources's annualized ROC % for the quarter that ended in Dec. 2013 is calculated as:

ROC % (Q: Dec. 2013 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2013 ) + Invested Capital (Q: Dec. 2013 ))/ count )
=-0.464 * ( 1 - 0% )/( (0.285 + 0.001)/ 2 )
=-0.464/0.143
=-324.48 %

where

Invested Capital(Q: Jun. 2013 )
=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))
=0.701 - 0.215 - ( 0.403 - max(0, 0.215 - 0.416+0.403))
=0.285

Invested Capital(Q: Dec. 2013 )
=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))
=0.422 - 0.212 - ( 0.419 - max(0, 0.213 - 0.422+0.419))
=0.001

Note: The Operating Income data used here is two times the semi-annual (Dec. 2013) data.

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

Mining Investments Resources's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2013 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2013 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2013  Q: Dec. 2013
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-0.464/( ( (0 + max(-0.202, 0)) + (0 + max(-0.21, 0)) )/ 2 )
=-0.464/( ( 0 + 0 )/ 2 )
=-0.464/0
= %

where Working Capital is:

Working Capital(Q: Jun. 2013 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0.013) - (0.215 + 0 + 0)
=-0.202

Working Capital(Q: Dec. 2013 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.002 + 0 + 0.001) - (0.212 + 0 + 0.001)
=-0.21

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2013) EBIT data.

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

Mining Investments Resources's Operating Margin % for the quarter that ended in Dec. 2013 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2013 )/Revenue (Q: Dec. 2013 )
=-0.232/0.003
=-7,733.33 %

* 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.

Mining Investments Resources Operating Income Related Terms

Mining Investments Resources Operating Income Historical Data

* Premium members only.

The historical data trend for Mining Investments 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.

Mining Investments Resources Operating Income Chart

Mining Investments Resources Annual Data
Trend Mar04 Mar05 Mar06 Mar07 Mar08 Jun09 Jun10 Jun11 Jun12 Jun13
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.30 -0.08 -0.50 -0.63 -0.37

Mining Investments Resources Semi-Annual Data
Sep03 Mar04 Sep04 Mar05 Sep05 Mar06 Sep06 Mar07 Sep07 Mar08 Sep08 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13
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 -0.20 -0.43 -0.07 -0.30 -0.23

Mining Investments 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 Dec. 2013 adds up the semi-annually data reported by the company within the most recent 12 months, which was £-0.53 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 £-0.53 Mil mean?
Mining Investments Resources (LSE:MIR) has a Operating Income of £-0.53 Mil as of Dec. 2013. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Mining Investments Resources and its competitors.
Is Mining Investments Resources' Operating Income too high?
Mining Investments Resources' current Operating Income is £-0.53 Mil.
How does Mining Investments Resources' Operating Income compare to competitors?
Mining Investments Resources' Operating Income of £-0.53 Mil can be compared against companies in the Conglomerates 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 Conglomerates company?
A good Operating Income depends on the Conglomerates 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 Mining Investments Resources and its competitors. Mining Investments Resources's current Operating Income is £-0.53 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mining Investments Resources stock overvalued right now?
Mining Investments Resources (LSE:MIR) has a current Operating Income of £-0.53 Mil. The current Operating Income is £-0.53 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 Mining Investments Resources (LSE:MIR), the current Operating Income is £-0.53 Mil as of Dec. 2013. 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.

Mining Investments Resources Business Description

Mining Investments Resources PLC is an investing company. It mainly invests in businesses which possess the opportunity for high growth, generally through exploitation of intellectual property. The Company's investing policy is to acquire a diverse portfolio of direct and indirect interests in exploration and producing projects and assets in the natural resources sector.