Industria Automotriz de CV (MEX:IASASA) Operating Income: MXN-7.75 Mil (TTM As of Jun. 2011)

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What is Industria Automotriz de CV Operating Income?

Industria Automotriz de CV MEX:IASASA Operating Income is MXN-7.75 Mil as of Jun. 2011.

Industria Automotriz de CV's Operating Income for the three months ended in Jun. 2011 was MXN-1.29 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2011 was MXN-7.75 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Industria Automotriz de CV's Operating Income for the three months ended in Jun. 2011 was MXN-1.29 Mil. Industria Automotriz de CV's Revenue for the three months ended in Jun. 2011 was MXN9.68 Mil. Therefore, Industria Automotriz de CV's Operating Margin % for the quarter that ended in Jun. 2011 was -13.27%.

Industria Automotriz de CV'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. Industria Automotriz de CV's annualized ROC % for the quarter that ended in Jun. 2011 was -0.47%. Industria Automotriz de CV's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2011 was -0.69%.

Industria Automotriz de CV  (MEX:IASASA) Operating Income Explanation

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

Industria Automotriz de CV's annualized ROC % for the quarter that ended in Jun. 2011 is calculated as:

ROC % (Q: Jun. 2011 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2011 ) + Invested Capital (Q: Jun. 2011 ))/ count )
=-5.14 * ( 1 - 0% )/( (1105.819 + 1101.649)/ 2 )
=-5.14/1103.734
=-0.47 %

where

Invested Capital(Q: Mar. 2011 )
=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))
=769.355 - 582.672 - ( 0.967 - max(0, 943.481 - 24.345+0.967))
=1105.819

Invested Capital(Q: Jun. 2011 )
=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))
=760.424 - 571.924 - ( 2.839 - max(0, 930.97 - 17.821+2.839))
=1101.649

Note: The Operating Income data used here is four times the quarterly (Jun. 2011) data.

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

Industria Automotriz de CV's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2011 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2011 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2011  Q: Jun. 2011
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-5.14/( ( (745.01 + max(-813.082, 0)) + (742.603 + max(-809.73, 0)) )/ 2 )
=-5.14/( ( 745.01 + 742.603 )/ 2 )
=-5.14/743.8065
=-0.69 %

where Working Capital is:

Working Capital(Q: Mar. 2011 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(19.939 + 1.642 + 1.797) - (582.672 + 0 + 253.788)
=-813.082

Working Capital(Q: Jun. 2011 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(11.684 + 1.501 + 1.797) - (571.924 + 0 + 252.788)
=-809.73

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2011) EBIT data.

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

Industria Automotriz de CV's Operating Margin % for the quarter that ended in Jun. 2011 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2011 )/Revenue (Q: Jun. 2011 )
=-1.285/9.682
=-13.27 %

* 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.

Industria Automotriz de CV Operating Income Related Terms

Industria Automotriz de CV Operating Income Historical Data

* Premium members only.

The historical data trend for Industria Automotriz de CV'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.

Industria Automotriz de CV Operating Income Chart

Industria Automotriz de CV Annual Data
Trend Dec07 Dec08 Dec09
Operating Income
114.00 103.08 34.02

Industria Automotriz de CV Quarterly Data
Dec07 Dec08 Sep09 Dec09 Mar10 Jun10 Sep10 Mar11 Jun11
Operating Income Get a 7-Day Free Trial Premium Member Only -4.51 -2.42 -3.69 -2.78 -1.29

Industria Automotriz de CV 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. 2011 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN-7.75 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 MXN-7.75 Mil mean?
Industria Automotriz de CV (MEX:IASASA) has a Operating Income of MXN-7.75 Mil as of Jun. 2011. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Industria Automotriz de CV and its competitors.
Is Industria Automotriz de CV's Operating Income too high?
Industria Automotriz de CV's current Operating Income is MXN-7.75 Mil.
How does Industria Automotriz de CV's Operating Income compare to CSHEF and AMTY?
Industria Automotriz de CV's Operating Income of MXN-7.75 Mil can be compared against companies in the Vehicles & Parts 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 Vehicles & Parts company?
A good Operating Income depends on the Vehicles & Parts 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 Industria Automotriz de CV and its competitors. Industria Automotriz de CV's current Operating Income is MXN-7.75 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Industria Automotriz de CV stock overvalued right now?
Industria Automotriz de CV (MEX:IASASA) has a current Operating Income of MXN-7.75 Mil. The current Operating Income is MXN-7.75 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 Industria Automotriz de CV (MEX:IASASA), the current Operating Income is MXN-7.75 Mil as of Jun. 2011. 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.

Industria Automotriz de CV Business Description

Address Avenida Universidad 1011, San Nicolas de los Garza, NL, MEX, 66400
Industria Automotriz SA de CV is engaged in manufacturing of stamping, assemblies and subassemblies for the automotive industry. The company also manufactures dies and tool, assembly attachments and attachments to check the produced pieces.