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Asseco Business Solutions (WAR:ABS) Operating Margin % : 26.70% (As of Mar. 2024)


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What is Asseco Business Solutions Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Asseco Business Solutions's Operating Income for the three months ended in Mar. 2024 was zł26.7 Mil. Asseco Business Solutions's Revenue for the three months ended in Mar. 2024 was zł99.8 Mil. Therefore, Asseco Business Solutions's Operating Margin % for the quarter that ended in Mar. 2024 was 26.70%.

Warning Sign:

Asseco Business Solutions SA operating margin has been in a 5-year decline. The average rate of decline per year is -1.4%.

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

WAR:ABS' s Operating Margin % Range Over the Past 10 Years
Min: 23.23   Med: 29.92   Max: 32.8
Current: 28.76


WAR:ABS's Operating Margin % is ranked better than
94.93% of 2759 companies
in the Software industry
Industry Median: 3.28 vs WAR:ABS: 28.76

Asseco Business Solutions's 5-Year Average Operating Margin % Growth Rate was -1.40% per year.

Asseco Business Solutions's Operating Income for the three months ended in Mar. 2024 was zł26.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was zł112.5 Mil.


Asseco Business Solutions Operating Margin % Historical Data

The historical data trend for Asseco Business Solutions'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.

Asseco Business Solutions Operating Margin % Chart

Asseco Business Solutions Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.01 32.80 30.77 29.77 28.76

Asseco Business Solutions 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 26.46 25.92 31.09 30.88 26.70

Competitive Comparison of Asseco Business Solutions's Operating Margin %

For the Software - Application subindustry, Asseco Business Solutions'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.


Asseco Business Solutions's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Asseco Business Solutions's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Asseco Business Solutions's Operating Margin % falls into.



Asseco Business Solutions 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.

Asseco Business Solutions'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 )
=109.437 / 380.54
=28.76 %

Asseco Business Solutions'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 )
=26.654 / 99.819
=26.70 %

* 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.


Asseco Business Solutions  (WAR:ABS) 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.


Asseco Business Solutions Operating Margin % Related Terms

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Asseco Business Solutions (WAR:ABS) Business Description

Traded in Other Exchanges
Address
ul. Konrada Wallenroda 4c, Lublin, POL, 20-607
Asseco Business Solutions SA serves as a Competence Centre accountable for the development of ERP software, mobile reporting systems (SFA), factoring systems and software for SMEs. Its offering also includes the provision, adaptation, and configuration of business applications for enterprises, design, and construction of infrastructure at the client or in the outsourcing model, providing equipment and system software of renowned partners, training for client's personnel, service and remote support for users. The company generates most of its revenue from its ERP Systems segment mainly in Poland.

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