WCYN (West Canyon Energy) Operating Income: $-0.26 Mil (TTM As of Dec. 2012)


What is West Canyon Energy Operating Income?

West Canyon Energy WCYN Operating Income is $-0.26 Mil as of Dec. 2012.

West Canyon Energy's Operating Income for the three months ended in Dec. 2012 was $-0.04 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2012 was $-0.26 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. West Canyon Energy's Operating Income for the three months ended in Dec. 2012 was $-0.04 Mil. West Canyon Energy's Revenue for the three months ended in Dec. 2012 was $0.00 Mil. Therefore, West Canyon Energy's Operating Margin % for the quarter that ended in Dec. 2012 was %.

West Canyon 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. West Canyon Energy's annualized ROC % for the quarter that ended in Dec. 2012 was -13.52%. West Canyon Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2012 was %.

West Canyon Energy  (OTCPK:WCYN) Operating Income Explanation

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

West Canyon Energy's annualized ROC % for the quarter that ended in Dec. 2012 is calculated as:

ROC % (Q: Dec. 2012 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2012 ) + Invested Capital (Q: Dec. 2012 ))/ count )
=-0.168 * ( 1 - 0% )/( (1.243 + 1.243)/ 2 )
=-0.168/1.243
=-13.52 %

where

Invested Capital(Q: Sep. 2012 )
=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))
=0.008 - 0.327 - ( 0.008 - max(0, 1.57 - 0.008+0.008))
=1.243

Invested Capital(Q: Dec. 2012 )
=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))
=0.002 - 0.362 - ( 0.002 - max(0, 1.605 - 0.002+0.002))
=1.243

Note: The Operating Income data used here is four times the quarterly (Dec. 2012) data.

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

West Canyon Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2012 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2012 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2012  Q: Dec. 2012
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-0.168/( ( (0 + max(-1.57, 0)) + (0 + max(-1.605, 0)) )/ 2 )
=-0.168/( ( 0 + 0 )/ 2 )
=-0.168/0
= %

where Working Capital is:

Working Capital(Q: Sep. 2012 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0) - (0.327 + 1.19 + 0.053)
=-1.57

Working Capital(Q: Dec. 2012 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 0 + 0) - (0.362 + 0 + 1.243)
=-1.605

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2012) EBIT data.

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

West Canyon Energy's Operating Margin % for the quarter that ended in Dec. 2012 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2012 )/Revenue (Q: Dec. 2012 )
=-0.042/0
= %

* 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.

West Canyon Energy Operating Income Related Terms

West Canyon Energy Operating Income Historical Data

* Premium members only.

The historical data trend for West Canyon 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.

West Canyon Energy Operating Income Chart

West Canyon Energy Annual Data
Trend Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12
Operating Income
Get a 7-Day Free Trial -0.92 -0.90 -0.49 -0.52 -0.30

West Canyon Energy Quarterly Data
Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12
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 -0.09 -0.07 -0.09 -0.06 -0.04

West Canyon 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 Dec. 2012 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.26 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 $-0.26 Mil mean?
West Canyon Energy (WCYN) has a Operating Income of $-0.26 Mil as of Dec. 2012. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on West Canyon Energy and its competitors.
Is West Canyon Energy's Operating Income too high?
West Canyon Energy's current Operating Income is $-0.26 Mil.
How does West Canyon Energy's Operating Income compare to EUENF and OOIL?
West Canyon Energy's Operating Income of $-0.26 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 West Canyon Energy and its competitors. West Canyon Energy's current Operating Income is $-0.26 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is West Canyon Energy stock overvalued right now?
West Canyon Energy (WCYN) has a current Operating Income of $-0.26 Mil. The current Operating Income is $-0.26 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 West Canyon Energy (WCYN), the current Operating Income is $-0.26 Mil as of Dec. 2012. 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.

West Canyon Energy Business Description

Industry EnergyOil & Gas
Address 1001 Mayport Road, Suite 330043, Atlantic Beach, FL, USA, 32233
West Canyon Energy Inc together with its subsidiaries, is engaged in the exploration and production of oil and gas properties.