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Texhoma Energy (Texhoma Energy) Operating Income : $-1.33 Mil (TTM As of Jun. 2008)


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What is Texhoma Energy Operating Income?

Texhoma Energy's Operating Income for the three months ended in Jun. 2008 was $-0.21 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2008 was $-1.33 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Texhoma Energy's Operating Income for the three months ended in Jun. 2008 was $-0.21 Mil. Texhoma Energy's Revenue for the three months ended in Jun. 2008 was $0.42 Mil. Therefore, Texhoma Energy's Operating Margin % for the quarter that ended in Jun. 2008 was -49.05%.

Texhoma 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. Texhoma Energy's annualized ROC % for the quarter that ended in Jun. 2008 was -16.82%. Texhoma Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2008 was -19.11%.


Texhoma Energy Operating Income Historical Data

The historical data trend for Texhoma Energy'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.

Texhoma Energy Operating Income Chart

Texhoma Energy Annual Data
Trend Sep01 Sep02 Sep03 Sep04 Sep05 Sep06 Sep07
Operating Income
Get a 7-Day Free Trial -0.57 -3.22 -2.83 -2.69 -2.24

Texhoma Energy Quarterly Data
Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08
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 -0.46 -0.80 -0.11 -0.22 -0.21

Texhoma 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 Jun. 2008 adds up the quarterly data reported by the company within the most recent 12 months, which was $-1.33 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.


Texhoma Energy  (GREY:TXHE) Operating Income Explanation

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

Texhoma Energy's annualized ROC % for the quarter that ended in Jun. 2008 is calculated as:

ROC % (Q: Jun. 2008 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2008 ) + Invested Capital (Q: Jun. 2008 ))/ count )
=-0.824 * ( 1 - 0% )/( (5.084 + 4.712)/ 2 )
=-0.824/4.898
=-16.82 %

where

Note: The Operating Income data used here is four times the quarterly (Jun. 2008) data.

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

Texhoma Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2008 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2008 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2008  Q: Jun. 2008
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-0.824/( ( (4.455 + max(-0.88, 0)) + (4.17 + max(-0.935, 0)) )/ 2 )
=-0.824/( ( 4.455 + 4.17 )/ 2 )
=-0.824/4.3125
=-19.11 %

where Working Capital is:

Working Capital(Q: Mar. 2008 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.275 + 0 + 0) - (1.155 + 0 + 0)
=-0.88

Working Capital(Q: Jun. 2008 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.305 + 0 + 0) - (1.24 + 0 + 0)
=-0.935

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2008) EBIT data.

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

Texhoma Energy's Operating Margin % for the quarter that ended in Jun. 2008 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2008 )/Revenue (Q: Jun. 2008 )
=-0.206/0.42
=-49.05 %

* 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.


Texhoma Energy Operating Income Related Terms

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Texhoma Energy (Texhoma Energy) Business Description

Traded in Other Exchanges
N/A
Address
24624 I-45 North, Suite 200, Spring, TX, USA, 77386
Texhoma Energy Inc is an oil and gas company. It is primarily engaged in the acquisition, exploration, and development of crude oil and natural gas properties. The company holds interests in approximately five oil wells located on the Shooter 916 lease located in Ochiltree County, Texas. It also holds interests in the Tonto North 390 B No. 3 well located in Scurry County, Texas. The firm has various non-operated working interests in approximately eight wells located in Gregg and Upshur Counties, Texas.

Texhoma Energy (Texhoma Energy) Headlines

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