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Changshu Fengfan Power Equipment Co (SHSE:601700) Operating Income : ¥-350 Mil (TTM As of Mar. 2025)


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What is Changshu Fengfan Power Equipment Co Operating Income?

Changshu Fengfan Power Equipment Co's Operating Income for the three months ended in Mar. 2025 was ¥-48 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2025 was ¥-350 Mil.

Warning Sign:

Changshu Fengfan Power Equipment Co Ltd has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Changshu Fengfan Power Equipment Co's Operating Income for the three months ended in Mar. 2025 was ¥-48 Mil. Changshu Fengfan Power Equipment Co's Revenue for the three months ended in Mar. 2025 was ¥572 Mil. Therefore, Changshu Fengfan Power Equipment Co's Operating Margin % for the quarter that ended in Mar. 2025 was -8.44%.

Changshu Fengfan Power Equipment 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. Changshu Fengfan Power Equipment Co's annualized ROC % for the quarter that ended in Mar. 2025 was -2.82%. Changshu Fengfan Power Equipment Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2025 was -13.81%.


Changshu Fengfan Power Equipment Co Operating Income Historical Data

The historical data trend for Changshu Fengfan Power Equipment 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.

Changshu Fengfan Power Equipment Co Operating Income Chart

Changshu Fengfan Power Equipment Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 282.08 218.94 76.36 132.49 -178.11

Changshu Fengfan Power Equipment Co Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 123.43 51.89 16.21 -369.63 -48.26

Changshu Fengfan Power Equipment 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 Mar. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was ¥-350 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.


Changshu Fengfan Power Equipment Co  (SHSE:601700) Operating Income Explanation

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

Changshu Fengfan Power Equipment Co's annualized ROC % for the quarter that ended in Mar. 2025 is calculated as:

ROC % (Q: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2024 ) + Invested Capital (Q: Mar. 2025 ))/ count )
=-193.036 * ( 1 - 19.51% )/( (5571.201 + 5445.093)/ 2 )
=-155.3746764/5508.147
=-2.82 %

where

Invested Capital(Q: Dec. 2024 )
=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))
=7995.302 - 1449.48 - ( 2249.623 - max(0, 4391.415 - 5366.036+2249.623))
=5571.201

Invested Capital(Q: Mar. 2025 )
=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))
=7862.779 - 1407.277 - ( 2361.529 - max(0, 4239.179 - 5249.588+2361.529))
=5445.093

Note: The Operating Income data used here is four times the quarterly (Mar. 2025) data.

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

Changshu Fengfan Power Equipment Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2024  Q: Mar. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-231/( ( (1500.003 + max(223.743, 0)) + (1469.025 + max(153.504, 0)) )/ 2 )
=-231/( ( 1723.746 + 1622.529 )/ 2 )
=-231/1673.1375
=-13.81 %

where Working Capital is:

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1035.971 + 920.516 + 151.954) - (1449.48 + 0 + 435.218)
=223.743

Working Capital(Q: Mar. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(964.804 + 851.78 + 161.588) - (1407.277 + 0 + 417.391)
=153.504

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2025) EBIT data.

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

Changshu Fengfan Power Equipment Co's Operating Margin % for the quarter that ended in Mar. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2025 )/Revenue (Q: Mar. 2025 )
=-48.259/571.71
=-8.44 %

* 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.


Changshu Fengfan Power Equipment Co Operating Income Related Terms

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Changshu Fengfan Power Equipment Co Business Description

Traded in Other Exchanges
N/A
Address
Number 8, South Renmin Road, West Industrial Park, Shanghu, Changshu, CHN, 215554
Changshu Fengfan Power Equipment Co Ltd manufactures and supplies galvanized steel towers in China. It offers transmission towers, including angle steel, spanning, and steel tube towers, as well as independent poles; substation frameworks; communication towers; crane and wind power bases; and lamp poles, tin trunks, scaffolds, and sledges. The company provides its products for high-pressure or ultra-high-pressure power transmission lines, steel tube towers, steel tube poles, transformer substation frameworks, and other steel-supporting structures.
Executives
Zhao Jin Yuan Supervisors
Zhao Yue Hua senior management
Chen Liang Dong senior management
Fan Xu Xing Supervisors
Zhu Qun Fen Supervisors
Yang Li senior management
Fan Jian Gang Director
Gu Xiao Lei Supervisors
Sang Qin Hua Director
Xie Zuo Peng senior management
Zhao Yu Min Director

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