Gold and GemStone Mining (Gold and GemStone Mining) Operating Income : $-0.33 Mil (TTM As of Oct. 2014)

View and export this data going back to 2010. Start your Free Trial

What is Gold and GemStone Mining Operating Income?

Gold and GemStone Mining's Operating Income for the three months ended in Oct. 2014 was $-0.16 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was $-0.33 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Gold and GemStone Mining's Operating Income for the three months ended in Oct. 2014 was $-0.16 Mil. Gold and GemStone Mining's Revenue for the three months ended in Oct. 2014 was $0.00 Mil. Therefore, Gold and GemStone Mining's Operating Margin % for the quarter that ended in Oct. 2014 was %.

Gold and GemStone Mining'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. Gold and GemStone Mining's annualized ROC % for the quarter that ended in Oct. 2014 was -236.82%. Gold and GemStone Mining's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2014 was -462.88%.

Gold and GemStone Mining Operating Income Historical Data

The historical data trend for Gold and GemStone Mining'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.

Gold and GemStone Mining Operating Income Chart

Gold and GemStone Mining Annual Data

Trend

Jan10

Jan11

Jan12

Operating Income

-0.01

-0.02

-0.03

Gold and GemStone Mining Quarterly Data
	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Apr14	Jul14	Oct14
Operating Income	Get a 7-Day Free Trial														-0.07	-0.16	-0.16	-	-0.16

Gold and GemStone Mining 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 Oct. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.33 Mil.

Gold and GemStone Mining (OTCPK:GGSM) Operating Income Explanation

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

Gold and GemStone Mining's annualized ROC % for the quarter that ended in Oct. 2014 is calculated as:

	ROC % (Q: Oct. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2014 )	+	Invested Capital (Q: Oct. 2014 ))	/ count )
=	-0.656 * ( 1 - 0% )	/	( (0.301	+	0.253)	/ 2 )
=	-0.656	/	0.277
=	-236.82 %

where

	Invested Capital		(Q: Jul. 2014 )
=	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	))
=	0.302	-	0	-	( 0.001	-	max(0, 0.002	-	0.302	+	0.001	))
=	0.301

	Invested Capital		(Q: Oct. 2014 )
=	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	))
=	0.001	-	0.079	-	( 0	-	max(0, 0.332	-	0.001	+	0	))
=	0.253

Note: The Operating Income data used here is four times the quarterly (Oct. 2014) data.

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

Gold and GemStone Mining's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2014 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Oct. 2014 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jul. 2014		Q: Oct. 2014
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-0.692	/	( ( (0 + max(0.299, 0))	+	(0 + max(-0.221, 0)) )	/	2 )
=	-0.692	/	( ( 0.299	+	0 )	/	2 )
=	-0.692	/	0.1495
=	-462.88 %

where Working Capital is:

	Working Capital		(Q: Jul. 2014 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0.301)	-	(0	+	0	+	0.002)
=	0.299

	Working Capital		(Q: Oct. 2014 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0.001)	-	(0.079	+	0	+	0.143)
=	-0.221

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Oct. 2014) EBIT data.

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

Gold and GemStone Mining's Operating Margin % for the quarter that ended in Oct. 2014 is calculated as:

Operating Margin %	=	Operating Income (Q: Oct. 2014 )	/	Revenue (Q: Oct. 2014 )
	=	-0.164	/	0
	=	%

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.

Gold and GemStone Mining Operating Income Related Terms

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

Gold and GemStone Mining (Gold and GemStone Mining) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Gold and GemStone Mining Inc (OTCPK:GGSM) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

Jln. Jend. S. Parman Kav. 22-24, Grand Slipi Tower, Jakarta, IDN, 11480

Website

https://www.ggsmglobal.com

Gold and GemStone Mining Inc is an exploration stage company. It is engaged in the acquisition, exploration, and development of gold and other silver properties. The company's mining claims include British Columbia Canada, Sinaloa, Mexico for gold and rare earth elements. Its project includes Chihuahua and Gringo Viejo project in Mexico. The company is also engaged in the charter boat business in the Mentawai Islands and Beyond.