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Brookfield Asset Management (Brookfield Asset Management) Operating Margin %

: -10.63% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Brookfield Asset Management's Operating Income for the three months ended in Dec. 2023 was $-17.0 Mil. Brookfield Asset Management's Revenue for the three months ended in Dec. 2023 was $160.0 Mil. Therefore, Brookfield Asset Management's Operating Margin % for the quarter that ended in Dec. 2023 was -10.63%.

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

BAM' s Operating Margin % Range Over the Past 10 Years
Min: 13.58   Med: 60.6   Max: 74.14
Current: 21.23


BAM's Operating Margin % is ranked better than
57.89% of 634 companies
in the Asset Management industry
Industry Median: 13.595 vs BAM: 21.23

Brookfield Asset Management's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Brookfield Asset Management's Operating Income for the three months ended in Dec. 2023 was $-17.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $51.0 Mil.


Brookfield Asset Management Operating Margin % Historical Data

The historical data trend for Brookfield Asset Management'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.

Brookfield Asset Management Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Operating Margin %
60.60 74.14 - 13.58

Brookfield Asset Management Quarterly Data
Dec20 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 63.10 - 21.28 15.79 -10.63

Competitive Comparison

For the Asset Management subindustry, Brookfield Asset Management'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.


Brookfield Asset Management Operating Margin % Distribution

For the Asset Management industry and Financial Services sector, Brookfield Asset Management's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Brookfield Asset Management's Operating Margin % falls into.



Brookfield Asset Management 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.

Brookfield Asset Management'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 )
=52 / 383
=13.58 %

Brookfield Asset Management'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 )
=-17 / 160
=-10.63 %

* 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.


Brookfield Asset Management  (NYSE:BAM) 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.


Brookfield Asset Management Operating Margin % Related Terms

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Brookfield Asset Management (Brookfield Asset Management) Business Description

Traded in Other Exchanges
Address
181 Bay Street, Suite 100, Brookfield Place, Toronto, ON, CAN, M5H 2T3
Brookfield Asset Management Ltd engages in providing alternative asset management services through an ownership interest in a leading global alternative asset management business. It offers a range of alternative investment products to investors around the world including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies, and private wealth investors.