SPRN (Supernova Energy) Operating Income: $-0.29 Mil (TTM As of Sep. 2015)

What is Supernova Energy Operating Income?

Supernova Energy SPRN Operating Income is $-0.29 Mil as of Sep. 2015.

Supernova Energy's Operating Income for the three months ended in Sep. 2015 was $-0.03 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2015 was $-0.29 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Supernova Energy's Operating Income for the three months ended in Sep. 2015 was $-0.03 Mil. Supernova Energy's Revenue for the three months ended in Sep. 2015 was $0.00 Mil. Therefore, Supernova Energy's Operating Margin % for the quarter that ended in Sep. 2015 was -2,900.00%.

Supernova Energy'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. Supernova Energy's annualized ROC % for the quarter that ended in Sep. 2015 was -17.56%. Supernova Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2015 was -488.51%.

Supernova Energy (OTCPK:SPRN) Operating Income Explanation

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

Supernova Energy's annualized ROC % for the quarter that ended in Sep. 2015 is calculated as:

	ROC % (Q: Sep. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2015 )	+	Invested Capital (Q: Sep. 2015 ))	/ count )
=	-0.116 * ( 1 - 0% )	/	( (0.858	+	0.463)	/ 2 )
=	-0.116	/	0.6605
=	-17.56 %

where

	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	))
=	0.563	-	0.396	-	( 0.015	-	max(0, 0.708	-	0.017	+	0.015	))
=	0.858

	Invested Capital		(Q: Sep. 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	))
=	0.154	-	0.415	-	( 0.002	-	max(0, 0.728	-	0.004	+	0.002	))
=	0.463

Note: The Operating Income data used here is four times the quarterly (Sep. 2015) data.

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

Supernova Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2015 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2015 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2015		Q: Sep. 2015
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-1.7	/	( ( (0.546 + max(-0.394, 0))	+	(0.15 + max(-0.414, 0)) )	/	2 )
=	-1.7	/	( ( 0.546	+	0.15 )	/	2 )
=	-1.7	/	0.348
=	-488.51 %

where Working Capital is:

	Working Capital		(Q: Jun. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0.001)	-	(0.396	+	0	+	-0.0010000000000001)
=	-0.394

	Working Capital		(Q: Sep. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0.001)	-	(0.415	+	0	+	0)
=	-0.414

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2015) EBIT data.

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

Supernova Energy's Operating Margin % for the quarter that ended in Sep. 2015 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2015 )	/	Revenue (Q: Sep. 2015 )
	=	-0.029	/	0.001
	=	-2,900.00 %

* 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.

Supernova Energy Operating Income Related Terms

Supernova Energy Operating Income Historical Data

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The historical data trend for Supernova Energy's Operating Income can be seen below:

Supernova Energy Operating Income Chart

Supernova Energy Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Operating Income

-0.04

-0.64

-0.73

-0.76

-0.57

Supernova Energy Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
Operating Income	Get a 7-Day Free Trial															-0.10	-0.13	-0.05	-0.08	-0.03

Supernova Energy 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 Sep. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.29 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of $-0.29 Mil mean?

Supernova Energy (SPRN) has a Operating Income of $-0.29 Mil as of Sep. 2015. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Supernova Energy and its competitors.

Is Supernova Energy's Operating Income too high?

Supernova Energy's current Operating Income is $-0.29 Mil.

How does Supernova Energy's Operating Income compare to HDYNQ and OOIL?

Supernova Energy's Operating Income of $-0.29 Mil can be compared against companies in the Oil & Gas 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 Oil & Gas company?

A good Operating Income depends on the Oil & Gas 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 Supernova Energy and its competitors. Supernova Energy's current Operating Income is $-0.29 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Supernova Energy stock overvalued right now?

Supernova Energy (SPRN) has a current Operating Income of $-0.29 Mil. The current Operating Income is $-0.29 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 Supernova Energy (SPRN), the current Operating Income is $-0.29 Mil as of Sep. 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.

Supernova Energy Business Description

Industry Energy Oil & Gas

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Address 265 Sunrise Highway, Suite 1-276, Rockville Centre, NY, USA, 11570

Website https://www.snenergyinc.com

Supernova Energy Inc is a United States-based oil and gas exploration and production company. The company provides wellbore completion and re-completion services for small, independent operators with existing oil and gas production. Its consulting services include completion, recompletion, workover, well engineering services, project management, and turnkey solutions.