Genesis Energy (NZSE:GNE) Operating Income : NZ$171 Mil (TTM As of Dec. 2023)

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What is Genesis Energy Operating Income?

Genesis Energy's Operating Income for the six months ended in Dec. 2023 was NZ$92 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was NZ$171 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Genesis Energy's Operating Income for the six months ended in Dec. 2023 was NZ$92 Mil. Genesis Energy's Revenue for the six months ended in Dec. 2023 was NZ$1,379 Mil. Therefore, Genesis Energy's Operating Margin % for the quarter that ended in Dec. 2023 was 6.65%.

Good Sign:

Genesis Energy Ltd operating margin is expanding. Margin expansion is usually a good sign.

Genesis Energy's 5-Year average Growth Rate for Operating Margin % was 13.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Genesis Energy's annualized ROC % for the quarter that ended in Dec. 2023 was 2.66%. Genesis Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 4.72%.

Genesis Energy Operating Income Historical Data

The historical data trend for Genesis 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.

Genesis Energy Operating Income Chart

Genesis Energy Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Operating Income

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149.00

142.40

209.10

220.10

254.70

Genesis Energy Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial															102.30	117.80	175.90	78.80	91.70

Genesis 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. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was NZ$171 Mil.

Genesis Energy (NZSE:GNE) Operating Income Explanation

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

Genesis Energy's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	183.4 * ( 1 - 28.41% )	/	( (5048.2	+	4826.5)	/ 2 )
=	131.29606	/	4937.35
=	2.66 %

where

	Invested Capital		(Q: Jun. 2023 )
=	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	))
=	5090	-	237.3	-	( 60.1	-	max(0, 789.9	-	594.4	+	60.1	))
=	5048.2

	Invested Capital		(Q: Dec. 2023 )
=	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	))
=	5165.9	-	269.9	-	( 69.5	-	max(0, 514.7	-	592.7	+	69.5	))
=	4826.5

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

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

Genesis Energy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	185.4	/	( ( (3841.1 + max(191.2, 0))	+	(3658.1 + max(171.8, 0)) )	/	2 )
=	185.4	/	( ( 4032.3	+	3829.9 )	/	2 )
=	185.4	/	3931.1
=	4.72 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(246.6	+	143	+	144.7)	-	(237.3	+	27.7	+	78.1)
=	191.2

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(238.9	+	146.1	+	138.2)	-	(269.9	+	6.9	+	74.6)
=	171.8

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

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

Genesis Energy's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	91.7	/	1379.4
	=	6.65 %

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.

Genesis Energy Operating Income Related Terms

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

Genesis Energy (NZSE:GNE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Genesis Energy Ltd (NZSE:GNE) » Definitions » Operating Income

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1G6:Germany GNE:Australia

Address

155 Fanshawe Street, Genesis Energy Level 6, Wynyard Quarter, Auckland, NZL, 1010

Website

https://www.genesisenergy.co.nz

Genesis Energy is one of New Zealand's leading producers of electricity, accounting for more than 15% of the country's total generation. The firm enjoys a strong retail presence, with the highest retail market share, at over 25%. The company has a mix of renewable and thermal assets, with the latter accounting for about 55%-60% of the firm's overall production. The company has a 46% interest in the Kupe oil and gas field.