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Assa Abloy AB (Assa Abloy AB) Operating Margin % : 15.41% (As of Mar. 2024)


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What is Assa Abloy AB Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Assa Abloy AB's Operating Income for the three months ended in Mar. 2024 was $521 Mil. Assa Abloy AB's Revenue for the three months ended in Mar. 2024 was $3,381 Mil. Therefore, Assa Abloy AB's Operating Margin % for the quarter that ended in Mar. 2024 was 15.41%.

Good Sign:

Assa Abloy AB operating margin is expanding. Margin expansion is usually a good sign.

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

ASAZY' s Operating Margin % Range Over the Past 10 Years
Min: 12.23   Med: 15.51   Max: 16.45
Current: 15.98


ASAZY's Operating Margin % is ranked better than
80.45% of 1059 companies
in the Business Services industry
Industry Median: 6.31 vs ASAZY: 15.98

Assa Abloy AB's 5-Year Average Operating Margin % Growth Rate was 1.80% per year.

Assa Abloy AB's Operating Income for the three months ended in Mar. 2024 was $521 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $2,164 Mil.


Assa Abloy AB Operating Margin % Historical Data

The historical data trend for Assa Abloy AB'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.

Assa Abloy AB Operating Margin % Chart

Assa Abloy AB 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 15.60 12.23 15.41 15.76 15.26

Assa Abloy AB 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 12.22 15.89 14.68 17.91 15.41

Competitive Comparison of Assa Abloy AB's Operating Margin %

For the Security & Protection Services subindustry, Assa Abloy AB'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.


Assa Abloy AB's Operating Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Assa Abloy AB's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Assa Abloy AB's Operating Margin % falls into.



Assa Abloy AB 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.

Assa Abloy AB'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 )
=2093.082 / 13718.219
=15.26 %

Assa Abloy AB'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 )
=521.165 / 3380.942
=15.41 %

* 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.


Assa Abloy AB  (OTCPK:ASAZY) 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.


Assa Abloy AB Operating Margin % Related Terms

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Assa Abloy AB (Assa Abloy AB) Business Description

Address
Klarabergsviadukten 90, P.O. Box 70340, Stockholm, SWE, SE-107 23
Assa Abloy is the world's largest supplier of locking and physical access solutions, sporting the world's largest installed base of locks that protect some of the most security-sensitive buildings, such as the European Parliament in Brussels. Three quarters of its revenue comes from government, commercial, and other nonresidential customers. The company's product base is centred on electromechanical locks, which require identification to unlock with a keycard, biometric scan, or personal identification number. Assa Abloy's products are sold directly to security systems integrators, locksmiths, hardware stores, and original equipment manufacturers.

Assa Abloy AB (Assa Abloy AB) Headlines