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Envoy Textiles (DHA:ENVOYTEX) Operating Margin % : 14.19% (As of Mar. 2024)


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What is Envoy Textiles Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Envoy Textiles's Operating Income for the three months ended in Mar. 2024 was BDT544 Mil. Envoy Textiles's Revenue for the three months ended in Mar. 2024 was BDT3,837 Mil. Therefore, Envoy Textiles's Operating Margin % for the quarter that ended in Mar. 2024 was 14.19%.

Warning Sign:

Envoy Textiles Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3.4%.

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

DHA:ENVOYTEX' s Operating Margin % Range Over the Past 10 Years
Min: 11.34   Med: 12.89   Max: 17.26
Current: 11.34


DHA:ENVOYTEX's Operating Margin % is ranked better than
82.51% of 1035 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 3.89 vs DHA:ENVOYTEX: 11.34

Envoy Textiles's 5-Year Average Operating Margin % Growth Rate was -3.40% per year.

Envoy Textiles's Operating Income for the three months ended in Mar. 2024 was BDT544 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was BDT1,549 Mil.


Envoy Textiles Operating Margin % Historical Data

The historical data trend for Envoy Textiles'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.

Envoy Textiles Operating Margin % Chart

Envoy Textiles Annual Data
Trend Sep14 Sep15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.69 12.77 12.00 11.50 11.97

Envoy Textiles Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 14.80 8.01 12.03 10.49 14.19

Competitive Comparison of Envoy Textiles's Operating Margin %

For the Textile Manufacturing subindustry, Envoy Textiles'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.


Envoy Textiles's Operating Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Envoy Textiles's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Envoy Textiles's Operating Margin % falls into.



Envoy Textiles 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.

Envoy Textiles's Operating Margin % for the fiscal year that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=1296.513 / 10828.504
=11.97 %

Envoy Textiles's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=544.443 / 3836.816
=14.19 %

* 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.


Envoy Textiles  (DHA:ENVOYTEX) 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.


Envoy Textiles Operating Margin % Related Terms

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


Envoy Textiles (DHA:ENVOYTEX) Business Description

Traded in Other Exchanges
N/A
Address
18/E, Lake Circus, Kalabagan, Envoy Tower, West Panthapath, Dhaka, BGD, 1205
Envoy Textiles Ltd is a manufacturer of denim in Bangladesh. The company produces a range of denim products featuring a wide range of yarns and weaves in various shades of indigo and black. The company specializes in 4.5 oz to 14.75 oz ring and open-end denim and uses stretch, mill wash, and modern finishing processes. The product consists of cent percent cotton denim, overdyed denim fabric, flat/mercerized denim, coated denim, dual-core, blender, indigo, stretch denim fabric, vintage cross-hatch style denim fabric, natural denim, cotton/poly/spandex, performance denim, handloom/knit look, and tencel.

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