NOEC (New Oriental Energy & Chemical) Operating Income: $-7.77 Mil (TTM As of Dec. 2010)


What is New Oriental Energy & Chemical Operating Income?

New Oriental Energy & Chemical NOEC -99.00% Operating Income is $-7.77 Mil as of Dec. 2010.

New Oriental Energy & Chemical's Operating Income for the three months ended in Dec. 2010 was $-1.56 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2010 was $-7.77 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. New Oriental Energy & Chemical's Operating Income for the three months ended in Dec. 2010 was $-1.56 Mil. New Oriental Energy & Chemical's Revenue for the three months ended in Dec. 2010 was $0.94 Mil. Therefore, New Oriental Energy & Chemical's Operating Margin % for the quarter that ended in Dec. 2010 was -165.68%.

New Oriental Energy & Chemical'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. New Oriental Energy & Chemical's annualized ROC % for the quarter that ended in Dec. 2010 was -7.44%. New Oriental Energy & Chemical's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2010 was -13.56%.

New Oriental Energy & Chemical  (OTCPK:NOEC) Operating Income Explanation

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

New Oriental Energy & Chemical's annualized ROC % for the quarter that ended in Dec. 2010 is calculated as:

ROC % (Q: Dec. 2010 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2010 ) + Invested Capital (Q: Dec. 2010 ))/ count )
=-6.256 * ( 1 - 0% )/( (94.613 + 73.671)/ 2 )
=-6.256/84.142
=-7.44 %

where

Invested Capital(Q: Sep. 2010 )
=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))
=76.088 - 25.694 - ( 0.044 - max(0, 70.332 - 26.113+0.044))
=94.613

Invested Capital(Q: Dec. 2010 )
=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))
=54.315 - 23.888 - ( 0.127 - max(0, 47.278 - 4.034+0.127))
=73.671

Note: The Operating Income data used here is four times the quarterly (Dec. 2010) data.

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

New Oriental Energy & Chemical's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2010 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2010 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2010  Q: Dec. 2010
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-6.256/( ( (46.062 + max(-1.915, 0)) + (46.243 + max(-23.067, 0)) )/ 2 )
=-6.256/( ( 46.062 + 46.243 )/ 2 )
=-6.256/46.1525
=-13.56 %

where Working Capital is:

Working Capital(Q: Sep. 2010 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.222 + 1.748 + 23.863) - (25.694 + 0.472 + 1.582)
=-1.915

Working Capital(Q: Dec. 2010 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.077 + 1.512 + 2.079) - (23.888 + 0.49 + 2.357)
=-23.067

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2010) EBIT data.

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

New Oriental Energy & Chemical's Operating Margin % for the quarter that ended in Dec. 2010 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2010 )/Revenue (Q: Dec. 2010 )
=-1.564/0.944
=-165.68 %

* 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.

New Oriental Energy & Chemical Operating Income Related Terms

New Oriental Energy & Chemical Operating Income Historical Data

* Premium members only.

The historical data trend for New Oriental Energy & Chemical'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.

New Oriental Energy & Chemical Operating Income Chart

New Oriental Energy & Chemical Annual Data
Trend Dec05 Mar07 Mar08 Mar09 Mar10
Operating Income
-0.07 3.70 6.52 -5.41 -10.01

New Oriental Energy & Chemical Quarterly Data
Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10
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 -0.75 -3.90 -1.96 -0.34 -1.56

New Oriental Energy & Chemical 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. 2010 adds up the quarterly data reported by the company within the most recent 12 months, which was $-7.77 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 $-7.77 Mil mean?
New Oriental Energy & Chemical (NOEC) has a Operating Income of $-7.77 Mil as of Dec. 2010. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on New Oriental Energy & Chemical and its competitors.
Is New Oriental Energy & Chemical's Operating Income too high?
New Oriental Energy & Chemical's current Operating Income is $-7.77 Mil.
How does New Oriental Energy & Chemical's Operating Income compare to RTKHQ and LBTD?
New Oriental Energy & Chemical's Operating Income of $-7.77 Mil can be compared against companies in the Agriculture 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 Agriculture company?
A good Operating Income depends on the Agriculture 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 New Oriental Energy & Chemical and its competitors. New Oriental Energy & Chemical's current Operating Income is $-7.77 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Oriental Energy & Chemical stock overvalued right now?
New Oriental Energy & Chemical (NOEC) has a current Operating Income of $-7.77 Mil. The current Operating Income is $-7.77 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 New Oriental Energy & Chemical (NOEC), the current Operating Income is $-7.77 Mil as of Dec. 2010. 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.

New Oriental Energy & Chemical Business Description

Address Xicheng Industrial Zone of Luoshan, Xinyang, Henan Province, CHN, 464200
New Oriental Energy & Chemical Corporation, through its subsidiary, is engaged in the manufacture and distribution of fertilizer and chemical products in the People's Republic of China.