South Jersey Industries (South Jersey Industries) Operating Income : $349 Mil (TTM As of Sep. 2022)

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What is South Jersey Industries Operating Income?

South Jersey Industries's Operating Income for the three months ended in Sep. 2022 was $11 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2022 was $349 Mil.

Warning Sign:

South Jersey Industries Inc has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. South Jersey Industries's Operating Income for the three months ended in Sep. 2022 was $11 Mil. South Jersey Industries's Revenue for the three months ended in Sep. 2022 was $609 Mil. Therefore, South Jersey Industries's Operating Margin % for the quarter that ended in Sep. 2022 was 1.87%.

Good Sign:

South Jersey Industries Inc operating margin is expanding. Margin expansion is usually a good sign.

South Jersey Industries's 5-Year average Growth Rate for Operating Margin % was 6.50% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. South Jersey Industries's annualized ROC % for the quarter that ended in Sep. 2022 was 0.82%. South Jersey Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2022 was 0.92%.

South Jersey Industries Operating Income Historical Data

The historical data trend for South Jersey Industries'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.

South Jersey Industries Operating Income Chart

South Jersey Industries Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Operating Income

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100.14

190.65

208.82

279.64

349.12

South Jersey Industries Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
Operating Income	Get a 7-Day Free Trial															-8.97	149.66	198.60	-10.25	11.40

South Jersey Industries 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 Sep. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $349 Mil.

South Jersey Industries (NYSE:SJI) Operating Income Explanation

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

South Jersey Industries's annualized ROC % for the quarter that ended in Sep. 2022 is calculated as:

	ROC % (Q: Sep. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Sep. 2022 ))	/ count )
=	45.6 * ( 1 - -37.7% )	/	( (7576.825	+	7679.641)	/ 2 )
=	62.7912	/	7628.233
=	0.82 %

where

	Invested Capital		(Q: Jun. 2022 )
=	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	))
=	7660.601	-	494.56	-	( 53.472	-	max(0, 1119.399	-	708.615	+	53.472	))
=	7576.825

	Invested Capital		(Q: Sep. 2022 )
=	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	))
=	7917.948	-	560.46	-	( 52.763	-	max(0, 1086.558	-	764.405	+	52.763	))
=	7679.641

Note: The Operating Income data used here is four times the quarterly (Sep. 2022) data.

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

South Jersey Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2022 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2022 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2022		Q: Sep. 2022
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	47.936	/	( ( (5113.61 + max(-76.674, 0))	+	(5298.296 + max(-123.841, 0)) )	/	2 )
=	47.936	/	( ( 5113.61	+	5298.296 )	/	2 )
=	47.936	/	5205.953
=	0.92 %

where Working Capital is:

	Working Capital		(Q: Jun. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(378.095	+	71.248	+	228.406)	-	(494.56	+	32.492	+	227.371)
=	-76.674

	Working Capital		(Q: Sep. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(352.437	+	120.902	+	255.103)	-	(560.46	+	51.458	+	240.365)
=	-123.841

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2022) EBIT data.

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

South Jersey Industries's Operating Margin % for the quarter that ended in Sep. 2022 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2022 )	/	Revenue (Q: Sep. 2022 )
	=	11.4	/	608.518
	=	1.87 %

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.

South Jersey Industries Operating Income Related Terms

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

South Jersey Industries (South Jersey Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » South Jersey Industries Inc (NYSE:SJI) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 South Jersey Plaza, Folsom, NJ, USA, 08037

Website

https://www.sjindustries.com

South Jersey Industries Inc is a New Jersey holding company that acquires and develops utility companies. Through its many subsidiaries, SJI is primarily involved in transmitting, distributing, and selling natural gas and electricity in the mid-Atlantic U.S. The company segments its operations into gas utility operations and energy group businesses. The majority of SJI's total revenue comes from its gas utility operations, which encompasses the company's principal subsidiary: South Jersey Gas. SJG purchases, transmit, and sells natural gas primarily for residential consumers in southern New Jersey. The energy group also represents a significant income stream through its wholesale energy and retail electric services.

Executives

G Edison Holland	director	270 PEACHTREE ST NW BIN 910, ATLANTA GA 30303
Kevin M. O'dowd	director	1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037
Eric Moss Stein	officer: SVP, General Counsel	1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037
Leonard Jr Brinson	officer: SVP, Chief Information Officer	1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037
Karen L Phillips	officer: SVP, Human Resources	1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037
Christopher Paladino	director	1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037
Sheila Hartnett-devlin	director, Director	SOUTH JERSEY INDUSTRIES, 1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037
Sunita Holzer	director	SOUTH JERSEY INDUSTRIES, 1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037
Kathleen D Larkin	officer: SVP & CHRO	1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037
Cielo Hernandez	officer: SVP & CFO	C/O XL FLEET CORP., 145 NEWTON STREET, BOSTON MA 02135
Ann T Anthony	officer: Treasurer	1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037
Walter M Higgins	director	SOUTH JERSEY INDUSTRIES, 1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037
Michael J Renna	officer: Vice President	1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037
Melissa Orsen	officer: SVP & General Counsel	1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037
Steven R Cocchi	officer: SVP, Strategy & Growth	1 SOUTH JERSEY PLAZA, FOLSOM NJ 08037