Piedmont Natural Gas Co (Piedmont Natural Gas Co) Operating Income : $187 Mil (TTM As of Jul. 2016)

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What is Piedmont Natural Gas Co Operating Income?

Piedmont Natural Gas Co's Operating Income for the three months ended in Jul. 2016 was $7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2016 was $187 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Piedmont Natural Gas Co's Operating Income for the three months ended in Jul. 2016 was $7 Mil. Piedmont Natural Gas Co's Revenue for the three months ended in Jul. 2016 was $158 Mil. Therefore, Piedmont Natural Gas Co's Operating Margin % for the quarter that ended in Jul. 2016 was 4.22%.

Piedmont Natural Gas Co'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. Piedmont Natural Gas Co's annualized ROC % for the quarter that ended in Jul. 2016 was 0.65%. Piedmont Natural Gas Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2016 was 0.95%.

Piedmont Natural Gas Co Operating Income Historical Data

The historical data trend for Piedmont Natural Gas Co'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.

* Premium members only.

Piedmont Natural Gas Co Operating Income Chart

Piedmont Natural Gas Co Annual Data

Trend

Oct06

Oct07

Oct08

Oct09

Oct10

Oct11

Oct12

Oct13

Oct14

Oct15

Operating Income

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143.01

125.72

144.19

179.87

185.03

Piedmont Natural Gas Co Quarterly Data
	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16	Apr16	Jul16
Operating Income	Get a 7-Day Free Trial															5.23	-1.09	109.43	71.84	6.66

Piedmont Natural Gas Co 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 Jul. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $187 Mil.

Piedmont Natural Gas Co (NYSE:PNY) Operating Income Explanation

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

Piedmont Natural Gas Co's annualized ROC % for the quarter that ended in Jul. 2016 is calculated as:

	ROC % (Q: Jul. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Apr. 2016 )	+	Invested Capital (Q: Jul. 2016 ))	/ count )
=	26.62 * ( 1 - -38.65% )	/	( (5676.815	+	5607.812)	/ 2 )
=	36.90863	/	5642.3135
=	0.65 %

where

	Invested Capital		(Q: Apr. 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	))
=	5464.26	-	161.371	-	( 12.317	-	max(0, 652.891	-	278.965	+	12.317	))
=	5676.815

	Invested Capital		(Q: Jul. 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	))
=	5574.708	-	178.182	-	( 13.487	-	max(0, 481.242	-	269.956	+	13.487	))
=	5607.812

Note: The Operating Income data used here is four times the quarterly (Jul. 2016) data.

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

Piedmont Natural Gas Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2016 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jul. 2016 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Apr. 2016		Q: Jul. 2016
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	43.468	/	( ( (4535.691 + max(-22.661, 0))	+	(4633.052 + max(-35.672, 0)) )	/	2 )
=	43.468	/	( ( 4535.691	+	4633.052 )	/	2 )
=	43.468	/	4584.3715
=	0.95 %

where Working Capital is:

	Working Capital		(Q: Apr. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(90.09	+	33.337	+	76.803)	-	(161.371	+	20.636	+	40.884)
=	-22.661

	Working Capital		(Q: Jul. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(60.078	+	43.205	+	102.287)	-	(178.182	+	17.006	+	46.054)
=	-35.672

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jul. 2016) EBIT data.

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

Piedmont Natural Gas Co's Operating Margin % for the quarter that ended in Jul. 2016 is calculated as:

Operating Margin %	=	Operating Income (Q: Jul. 2016 )	/	Revenue (Q: Jul. 2016 )
	=	6.655	/	157.806
	=	4.22 %

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.

Piedmont Natural Gas Co Operating Income Related Terms

Thank you for viewing the detailed overview of Piedmont Natural Gas Co's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Piedmont Natural Gas Co (Piedmont Natural Gas Co) Business Description

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Website

http://www.piedmontng.com

Piedmont Natural Gas Co Inc was incorporated in New York in 1950 and began operations in 1951. In 1994, it merged into a newly formed North Carolina corporation with the same name for the purpose of changing its state of incorporation to North Carolina. The Company is an energy services company whose business is distribution of natural gas to residential, commercial, industrial and power generation clients in portions of North Carolina, South Carolina and Tennessee, including customers served by municipalities who are its wholesale customers. The Company is invested in joint venture, energy-related businesses, including unregulated retail natural gas marketing, regulated interstate natural gas transportation and storage and regulated intrastate natural gas transportation. It provides service from resource centers in Anderson, Greenville and Spartanburg in South Carolina and Charlotte, Salisbury, Greensboro, Winston-Salem, High Point, Burlington, Hickory, Indian Trail, Spruce Pine, Reidsville, Fayetteville, New Bern, Wilmington, Tarboro, Elizabeth City, Rockingham and Goldsboro in North Carolina. In North Carolina, it also provides natural gas service to Greenville, Rocky Mount and Wilson. In Tennessee, its service area is the metropolitan area of Nashville, including wholesale natural gas service to Gallatin and Smyrna. The Company has three reportable business segments, regulated utility, regulated non-utility activities and unregulated non-utility activities. The regulated utility segment includes operating a safe and reliable natural gas distribution system and the ability to recover the costs and expenses of the business in the rates charged to customers. The regulated non-utility activities segment consists of equity method investments in regulated energy-related joint ventures that are held by the Company's wholly-owned subsidiaries. The unregulated non-utility activities segment consists of its equity method investment in an unregulated energy-related joint venture that is held by a wholly-owned subsidiary. The regulated utility competes with other energy products, such as electricity and propane, in the residential and commercial customer markets. Natural gas for power generation competes with other fuel sources for the generation of electricity, including coal, nuclear and renewable resources. Additionally, as with industrial customers, the Company competes with other pipeline providers to serve the power generation plants.

Executives

Frank H Yoho	officer: Senior Vice President	5430 LBJ FREEWAY, SUITE 1800, DALLAS TX 75240
Thomas E Skains	director, officer: Chairman, President and CEO	214 N TRYON STREET, CHARLOTTE NC 28202
Phillip D Wright	director	17988 EDISON AVE., CHESTERFIELD MO 63005
Holding Frank B Jr	director	4300 SIX FORKS ROAD, RALEIGH NC 27609
Vicki W Mcelreath	director	PO BOX 33068, CHARLOTTE NC 28233
Minor M Shaw	director	PO BOX 6721, C/O MICCO CORP, GREENVILLE SC 29606
John W Harris	director	PO BOX 26532, RICHMOND VA 23261
Kim R Cocklin	officer: Vice President	C/O ATMOS ENERGY CORPORATION, PO BOX 650205, DALLAS TX 75256