AGL Resources (AGL Resources) Operating Income : $730 Mil (TTM As of Mar. 2016)

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What is AGL Resources Operating Income?

AGL Resources's Operating Income for the three months ended in Mar. 2016 was $348 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2016 was $730 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. AGL Resources's Operating Income for the three months ended in Mar. 2016 was $348 Mil. AGL Resources's Revenue for the three months ended in Mar. 2016 was $1,334 Mil. Therefore, AGL Resources's Operating Margin % for the quarter that ended in Mar. 2016 was 26.09%.

AGL Resources'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. AGL Resources's annualized ROC % for the quarter that ended in Mar. 2016 was 6.08%. AGL Resources's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2016 was 14.11%.

AGL Resources Operating Income Historical Data

The historical data trend for AGL Resources'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.

AGL Resources Operating Income Chart

AGL Resources Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Operating Income

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440.00

610.00

686.00

1,095.00

746.00

AGL Resources Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16
Operating Income	Get a 7-Day Free Trial															364.00	107.00	59.00	216.00	348.00

AGL Resources 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. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $730 Mil.

AGL Resources (NYSE:GAS) Operating Income Explanation

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

AGL Resources's annualized ROC % for the quarter that ended in Mar. 2016 is calculated as:

	ROC % (Q: Mar. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2015 )	+	Invested Capital (Q: Mar. 2016 ))	/ count )
=	1392 * ( 1 - 36.51% )	/	( (14699	+	14376)	/ 2 )
=	883.7808	/	14537.5
=	6.08 %

where

	Invested Capital		(Q: Dec. 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	))
=	14754	-	940	-	( 27	-	max(0, 3000	-	2115	+	27	))
=	14699

	Invested Capital		(Q: Mar. 2016 )
=	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	))
=	14336	-	912	-	( 20	-	max(0, 2489	-	1537	+	20	))
=	14376

Note: The Operating Income data used here is four times the quarterly (Mar. 2016) data.

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

AGL Resources's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2016 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2016 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2015		Q: Mar. 2016
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1392	/	( ( (9791 + max(-289, 0))	+	(9944 + max(-838, 0)) )	/	2 )
=	1392	/	( ( 9791	+	9944 )	/	2 )
=	1392	/	9867.5
=	14.11 %

where Working Capital is:

	Working Capital		(Q: Dec. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	651	+	505)	-	(940	+	196	+	309)
=	-289

	Working Capital		(Q: Mar. 2016 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	335	+	289)	-	(912	+	161	+	389)
=	-838

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2016) EBIT data.

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

AGL Resources's Operating Margin % for the quarter that ended in Mar. 2016 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2016 )	/	Revenue (Q: Mar. 2016 )
	=	348	/	1334
	=	26.09 %

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.

AGL Resources Operating Income Related Terms

Thank you for viewing the detailed overview of AGL Resources's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

AGL Resources (AGL Resources) Business Description

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GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » AGL Resources Inc (NYSE:GAS) » Definitions » Operating Income

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Address

Website

http://www.aglresources.com

AGL Resources Inc was incorporated on November 27, 1995 under the laws of the State of Georgia. It is an energy services holding company. The Company is engaged in the distribution of natural gas in seven states; Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee and Maryland through its seven natural gas distribution utilities. The Company's business segments are Distribution Operations, Retail Operations, Wholesale Services and Midstream Operations. The distribution operations segment includes seven natural gas local distribution utilities with a focus of providing safe and reliable delivery of natural gas. The retail operations segment serves natural gas commodity customers and service contracts. The wholesale services segment is engaged in asset management and optimization, storage, transportation, producer and peaking services and wholesale marketing of natural gas across the U.S. and Canada. Wholesale services utilizes a portfolio of natural gas storage assets, contracted supply from all of the main producing regions, as well as contracted storage and transportation capacity to provide these services to its customers. The midstream operations segment includes a number of businesses that are related and complementary to its primary business. The Company competes with electric utilities and fuel oil and propane providers serving the residential, commercial and industrial markets and natural gas facilities. The Company's business is subject to substantial regulation by federal, state and local regulatory authorities.

Executives

Bettina M Whyte	director	9 W 57TH ST 34TH FLR, NEW YORK NY 10019
Dennis M Love	director	TEN PEACHTREE PLACE, DEPT. 1466, ATLANTA GA 30309
Dean R Ohare	director	15 MOUNTAIN VIEW ROAD, WARREN NJ 07059
Norman Bobins	director	1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Brenda J Gaines	director	1445 ROSS AVENUE, SUITE 1400, DALLAS TX 75202
James A Rubright	director	3435 WOODHAVEN RD NW, ATLANTA GA 30305
Sandra N Bane	director
Henry C Wolf	director	NORFOLK SOUTHERN CORP, THREE COMMERCIAL PLACE, NORFOLK VA 23510-9219
Andrew W Evans	director, officer: President & CEO	TEN PEACHTREE PLACE, LOC. 1466, ATLANTA GA 30309
Charles R Crisp	director	1301 MCKINNEY STE 700, HOUSTON TX 77010
Bell Thomas D Jr	director
Armando J Olivera	director	C/O FLUOR CORPORATION, 6700 LAS COLINAS BLVD, IRVING TX 75039
Arthur E Johnson	director	IKON OFFICE SOLUTIONS INC, 70 VALLEY STREAM PARKWAY, MALVERN PA 19355
John Rau	director	MIAMI CORPORATION, 410 N. MICHIGAN AVENUE, ROOM 590, CHICAGO IL 60611
Somerhalder John W Ii	director, officer: Chairman and CEO	76 SOUTH MAIN STREET, AKRON OH 44308