Sanmenxia Tianyuan Aluminum Co (HKSE:08253) Net Income : HK$-282 Mil (TTM As of Dec. 2010)

Sanmenxia Tianyuan Aluminum Co Net Income Chart

Sanmenxia Tianyuan Aluminum Co Net Income Calculation

Net Income is the net profit that a company earns after deducting all costs and losses including cost of goods, SGA, DDA, interest expenses, non-recurring items and tax.

Net Income
= Revenue - Cost of Goods Sold - Selling, General, & Admin. Expense - Research & Development - Depreciation, Depletion and Amortization - Interest Expense - Non Operating Income (NRI) - Tax Expense + Others
= EBITDA - Depreciation, Depletion and Amortization - Interest Expense - Non Operating Income (NRI) - Tax Expense + Others
= Operating Income - Interest Expense - Non Operating Income (NRI) - Tax Expense + Others
= Pre-Tax Income - Tax Expense + Others

Sanmenxia Tianyuan Aluminum Co's Net Income for the fiscal year that ended in Dec. 2010 is calculated as

Sanmenxia Tianyuan Aluminum Co's Net Income for the quarter that ended in Dec. 2010 is calculated as

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Net Income for the trailing twelve months (TTM) ended in Dec. 2010 was HK$-282 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.

Sanmenxia Tianyuan Aluminum Co  (HKSE:08253) Net Income Explanation

Net Income is the most widely cited number in reporting a company's profitability. It is linked to the most popular earnings-per-share (EPS) number through:

Sanmenxia Tianyuan Aluminum Co's Earnings per Share (Diluted) (EPS) for the quarter that ended in Dec. 2010 is calculated as

* 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.

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

EPS is most useful for companies that have:

The dividend paid to preferred stocks needs to be subtracted from the total net income in the calculation of EPS because common stock holders are not entitled to that part of the net income.

Be Aware

Warren Buffett looks for consistency and upward long term trend. Because of share repurchase it is possible for net earnings trend to differ from EPS trend. He preferred Net Income over EPS. The companies with durable competitive advantage companies report higher % net earnings to total revenues.

Important: If a company is showing net earnings history greater than 20% on total revenues, it is probably benefiting from a long term competitive advantage.

If net earnings is less than 10%, likely to be in a highly competitive business.

Sanmenxia Tianyuan Aluminum Co Net Income Related Terms

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Sanmenxia Tianyuan Aluminum Co (HKSE:08253) Business Description