Aluworks (XGHA:ALW) Operating Income: GHS-11.28 Mil (TTM As of Dec. 2020)

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What is Aluworks Operating Income?

Aluworks XGHA:ALW Operating Income is GHS-11.28 Mil as of Dec. 2020.

Aluworks's Operating Income for the six months ended in Dec. 2020 was GHS-11.28 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2020 was GHS-11.28 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Aluworks's Operating Income for the six months ended in Dec. 2020 was GHS-11.28 Mil. Aluworks's Revenue for the six months ended in Dec. 2020 was GHS68.98 Mil. Therefore, Aluworks's Operating Margin % for the quarter that ended in Dec. 2020 was -16.35%.

Aluworks'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. Aluworks's annualized ROC % for the quarter that ended in Dec. 2020 was -2.99%. Aluworks's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2020 was -5.91%.

Aluworks  (XGHA:ALW) Operating Income Explanation

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

Aluworks's annualized ROC % for the quarter that ended in Dec. 2020 is calculated as:

ROC % (Q: Dec. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2019 ) + Invested Capital (Q: Dec. 2020 ))/ count )
=-11.275 * ( 1 - 8.12% )/( (337.348 + 355.425)/ 2 )
=-10.35947/346.3865
=-2.99 %

where

Invested Capital(Q: Dec. 2019 )
=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))
=226.051 - 24.163 - ( 0.749 - max(0, 154.933 - 19.473+0.749))
=337.348

Invested Capital(Q: Dec. 2020 )
=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))
=215.398 - 25.827 - ( 0.141 - max(0, 181.036 - 15.182+0.141))
=355.425

Note: The Operating Income data used here is one times the annual (Dec. 2020) data.

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

Aluworks's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2020 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2020 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2019  Q: Dec. 2020
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-12.023/( ( (206.458 + max(-34.362, 0)) + (200.096 + max(-39.482, 0)) )/ 2 )
=-12.023/( ( 206.458 + 200.096 )/ 2 )
=-12.023/203.277
=-5.91 %

where Working Capital is:

Working Capital(Q: Dec. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.737 + 15.569 + 1.651) - (24.163 + 0 + 28.156)
=-34.362

Working Capital(Q: Dec. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.398 + 12.191 + 1.912) - (25.827 + 0 + 28.156)
=-39.482

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Dec. 2020) EBIT data.

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

Aluworks's Operating Margin % for the quarter that ended in Dec. 2020 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2020 )/Revenue (Q: Dec. 2020 )
=-11.275/68.975
=-16.35 %

* 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.

Aluworks Operating Income Related Terms

Aluworks Operating Income Historical Data

* Premium members only.

The historical data trend for Aluworks'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.

Aluworks Operating Income Chart

Aluworks Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Operating Income
Get a 7-Day Free Trial -2.98 -6.75 -14.29 -7.72 -11.28

Aluworks Semi-Annual Data
Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Operating Income Get a 7-Day Free Trial -2.98 -6.75 -14.29 -7.72 -11.28

Aluworks 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.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Dec. 2020 was GHS-11.28 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 GHS-11.28 Mil mean?
Aluworks (XGHA:ALW) has a Operating Income of GHS-11.28 Mil as of Dec. 2020. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Aluworks and its competitors.
Is Aluworks' Operating Income too high?
Aluworks' current Operating Income is GHS-11.28 Mil.
How does Aluworks' Operating Income compare to AA?
Aluworks' Operating Income of GHS-11.28 Mil can be compared against companies in the Metals & Mining 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 Metals & Mining company?
A good Operating Income depends on the Metals & Mining 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 Aluworks and its competitors. Aluworks's current Operating Income is GHS-11.28 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aluworks stock overvalued right now?
Aluworks (XGHA:ALW) has a current Operating Income of GHS-11.28 Mil. The current Operating Income is GHS-11.28 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 Aluworks (XGHA:ALW), the current Operating Income is GHS-11.28 Mil as of Dec. 2020. 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.

Aluworks Business Description

Address Plot No. 63/1, Heavy Industrial Area, P. O. Box CO 914, Greater Accra, Tema, GHA
Aluworks Ltd is engaged in continuous casting and cold rolling of aluminum products. The company manufactures aluminum coils, circles, corrugated sheets, and flat sheets. It acts as a supplier of aluminum coils, discs, flat sheets and sheet-in-coil as raw materials for many small and medium-scale factories manufacturing aluminum household cooking utensils, corrugated roofing sheets, and general fabrication. The company generates the majority of its revenue from Ghana.