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Ainsworth Game Technology (ASX:AGI) Operating Margin % : -39.85% (As of Dec. 2023)


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What is Ainsworth Game Technology Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Ainsworth Game Technology's Operating Income for the six months ended in Dec. 2023 was A$-42.4 Mil. Ainsworth Game Technology's Revenue for the six months ended in Dec. 2023 was A$106.4 Mil. Therefore, Ainsworth Game Technology's Operating Margin % for the quarter that ended in Dec. 2023 was -39.85%.

Warning Sign:

Ainsworth Game Technology Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -6.7%.

The historical rank and industry rank for Ainsworth Game Technology's Operating Margin % or its related term are showing as below:

ASX:AGI' s Operating Margin % Range Over the Past 10 Years
Min: -117.68   Med: -21.72   Max: 27.64
Current: -26.45


ASX:AGI's Operating Margin % is ranked worse than
90.22% of 818 companies
in the Travel & Leisure industry
Industry Median: 8.315 vs ASX:AGI: -26.45

Ainsworth Game Technology's 5-Year Average Operating Margin % Growth Rate was -6.70% per year.

Ainsworth Game Technology's Operating Income for the six months ended in Dec. 2023 was A$-42.4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was A$-56.9 Mil.


Ainsworth Game Technology Operating Margin % Historical Data

The historical data trend for Ainsworth Game Technology's Operating Margin % 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.

Ainsworth Game Technology Operating Margin % Chart

Ainsworth Game Technology Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -39.95 -117.68 -103.67 -42.48 -26.45

Ainsworth Game Technology Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -19.29 -62.19 -42.58 -13.35 -39.85

Competitive Comparison of Ainsworth Game Technology's Operating Margin %

For the Gambling subindustry, Ainsworth Game Technology's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ainsworth Game Technology's Operating Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Ainsworth Game Technology's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Ainsworth Game Technology's Operating Margin % falls into.



Ainsworth Game Technology Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Ainsworth Game Technology's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=-56.914 / 215.165
=-26.45 %

Ainsworth Game Technology'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 )
=-42.387 / 106.375
=-39.85 %

* 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.


Ainsworth Game Technology  (ASX:AGI) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

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 (Diluted) 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.


Ainsworth Game Technology Operating Margin % Related Terms

Thank you for viewing the detailed overview of Ainsworth Game Technology's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ainsworth Game Technology (ASX:AGI) Business Description

Traded in Other Exchanges
Address
10 Holker Street, Newington, Sydney, NSW, AUS, 2127
Ainsworth Game Technology is an electronic gaming machine manufacturer, selling machines to pubs, clubs, and casinos. The firm is licence in all Australian states and territories, most North American jurisdictions, and several other countries. With the firm's domestic market share and earnings shrinking, the company has shifted focus to international operations, particularly the North American business.

Ainsworth Game Technology (ASX:AGI) Headlines

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