Operating Margin % is calculated as Operating Income divided by its Revenue. Acme United's Operating Income for the
three
months ended in Dec. 2023 was $2.1 Mil. Acme United's Revenue for the
three
months ended in Dec. 2023 was $41.9 Mil. Therefore, Acme United's Operating Margin % for the quarter that ended in Dec. 2023 was 4.99%.
Warning Sign:
Acme United Corp operating margin has been in a 5-year decline. The average rate of decline per year is -1.8%.
The historical rank and industry rank for Acme United's Operating Margin % or its related term are showing as below:
ACU'
s Operating Margin % Range Over the Past 10 Years
Min: 3.23 Med: 6.74 Max: 7.11
Current: 7.11
ACU's Operating Margin % is ranked better than 61.15% of 1856
companies
in the Consumer Packaged Goods industry
Industry Median: 4.85
vs ACU: 7.11
Acme United's 5-Year Average Operating Margin % Growth Rate was -1.80% per year.
Acme United's Operating Income for the
three
months ended in Dec. 2023 was $2.1 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $13.6 Mil.
Acme United Operating Margin % Historical Data
The historical data trend for Acme United'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.
Competitive Comparison of Acme United's Operating Margin %
For the Household & Personal Products subindustry, Acme United'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.
Acme United's Operating Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Acme United's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Acme United's Operating Margin % falls into.
Acme United 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.
Acme United's Operating Margin % for the fiscal year that ended in Dec. 2023 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.
Acme United (AMEX:ACU) 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 Nokias 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.
Acme United Operating Margin % Related Terms
Thank you for viewing the detailed overview of Acme United's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Acme United Corp is a supplier of first aid and medical products and cutting technology to the school, home, office, hardware, sporting goods, and industrial markets. Its principal products sold across all segments are first aid kits and medical products, scissors, shears, knives, rulers, pencil sharpeners, and sharpening tools. The Company sells its products to mass market and e-commerce retailers, industrial distributors, wholesale, contract, and retail stationery distributors, office supply superstores, sporting goods stores, and hardware chains. The Company's reportable business segments consist of the United States, Canada, and Europe, out of which a majority of the company's revenue is derived from the United States.
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