SCCI (Shimmick Construction Company) Operating Income: $16.23 Mil (TTM As of Jun. 2015)

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What is Shimmick Construction Company Operating Income?

Shimmick Construction Company SCCI Operating Income is $16.23 Mil as of Jun. 2015.

Shimmick Construction Company's Operating Income for the six months ended in Jun. 2015 was $8.80 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2015 was $16.23 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Shimmick Construction Company's Operating Income for the six months ended in Jun. 2015 was $8.80 Mil. Shimmick Construction Company's Revenue for the six months ended in Jun. 2015 was $242.00 Mil. Therefore, Shimmick Construction Company's Operating Margin % for the quarter that ended in Jun. 2015 was 3.64%.

Shimmick Construction Company'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. Shimmick Construction Company's annualized ROC % for the quarter that ended in Jun. 2015 was 12.92%. Shimmick Construction Company's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2015 was 31.57%.

Shimmick Construction Company  (NAS:SCCI) Operating Income Explanation

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

Shimmick Construction Company's annualized ROC % for the quarter that ended in Jun. 2015 is calculated as:

ROC % (Q: Jun. 2015 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2014 ) + Invested Capital (Q: Jun. 2015 ))/ count )
=17.604 * ( 1 - 0% )/( (117.221 + 155.304)/ 2 )
=17.604/136.2625
=12.92 %

where

Invested Capital(Q: Dec. 2014 )
=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))
=236.046 - 78.577 - ( 40.248 - max(0, 132.007 - 175.585+40.248))
=117.221

Invested Capital(Q: Jun. 2015 )
=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))
=268.876 - 86.927 - ( 26.645 - max(0, 156.791 - 205.527+26.645))
=155.304

Note: The Operating Income data used here is two times the semi-annual (Jun. 2015) data.

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

Shimmick Construction Company's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2015 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2015 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2014  Q: Jun. 2015
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=17.612/( ( (54.364 + max(-100.476, 0)) + (57.219 + max(-118.342, 0)) )/ 2 )
=17.612/( ( 54.364 + 57.219 )/ 2 )
=17.612/55.7915
=31.57 %

where Working Capital is:

Working Capital(Q: Dec. 2014 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 3.353 + 25.542) - (78.577 + 0 + 50.794)
=-100.476

Working Capital(Q: Jun. 2015 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 3.365 + 27.952) - (86.927 + 0 + 62.732)
=-118.342

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jun. 2015) EBIT data.

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

Shimmick Construction Company's Operating Margin % for the quarter that ended in Jun. 2015 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2015 )/Revenue (Q: Jun. 2015 )
=8.802/241.995
=3.64 %

* 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.

Shimmick Construction Company Operating Income Related Terms

Shimmick Construction Company Operating Income Historical Data

* Premium members only.

The historical data trend for Shimmick Construction Company'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.

Shimmick Construction Company Operating Income Chart

Shimmick Construction Company Annual Data
Trend Dec13 Dec14
Operating Income
-4.44 10.80

Shimmick Construction Company Semi-Annual Data
Dec13 Jun14 Dec14 Jun15
Operating Income 0.00 3.37 7.42 8.80

Shimmick Construction Company 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. 2015 adds up the semi-annually data reported by the company within the most recent 12 months, which was $16.23 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 $16.23 Mil mean?
Shimmick Construction Company (SCCI) has a Operating Income of $16.23 Mil as of Jun. 2015. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Shimmick Construction Company and its competitors.
Is Shimmick Construction Company's Operating Income too high?
Shimmick Construction Company's current Operating Income is $16.23 Mil.
How does Shimmick Construction Company's Operating Income compare to TSSI and SWMM?
Shimmick Construction Company's Operating Income of $16.23 Mil can be compared against companies in the Construction 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 Construction company?
A good Operating Income depends on the Construction 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 Shimmick Construction Company and its competitors. Shimmick Construction Company's current Operating Income is $16.23 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shimmick Construction Company stock overvalued right now?
Shimmick Construction Company (SCCI) has a current Operating Income of $16.23 Mil. The current Operating Income is $16.23 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 Shimmick Construction Company (SCCI), the current Operating Income is $16.23 Mil as of Jun. 2015. 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.

Shimmick Construction Company Business Description

Shimmick Construction Company Inc is a heavy civil construction company founded in 1990. The Company is engaged in construction activities in the western United States, with operations in California. The Company offers general construction, construction management, and design-build services to federal, state, and local public agencies and private customers in California and the Western United States. The Company operates in two segments including construction Projects and Construction Materials. The Construction Projects segment performs construction projects including new construction and improvement of streets, roads, highways, bridges, site work, underground, power-related facilities, utilities and other infrastructure projects. The Construction Materials segment mines and processes aggregates and operates plants that produce construction materials for internal use and for sale to third parties. The Company's customers include Caltrans, City of San Francisco, Port of Long Beach, Port of Los Angeles, City of Los Angeles, LA MTA, BART, VTA, and the Metropolitan Water District of Southern California (MWD). The Company faces competition from competitors including Balfour Beatty plc, Barnard Construction Company, Inc., Dragados S.A., Flatiron Construction Corp., Fluor Corporation, Granite Construction Incorporated, Kiewit Corporation, Obayashi Corporation, Skanska AB, Traylor Bros., Inc., Tutor Perini Corporation, and Walsh Construction Co. The Company's business is subject to various federal, state and local laws and regulations relating to the environment, including those relating to discharges to air, water and land, the handling and disposal of solid and hazardous waste, the handling of underground storage tanks and the cleanup of properties affected by hazardous substances.