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Books-A-Million (Books-A-Million) Operating Margin % : -6.47% (As of Oct. 2015)


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What is Books-A-Million Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Books-A-Million's Operating Income for the three months ended in Oct. 2015 was $-6.6 Mil. Books-A-Million's Revenue for the three months ended in Oct. 2015 was $101.6 Mil. Therefore, Books-A-Million's Operating Margin % for the quarter that ended in Oct. 2015 was -6.47%.

The historical rank and industry rank for Books-A-Million's Operating Margin % or its related term are showing as below:


BAMM's Operating Margin % is not ranked *
in the Retail - Cyclical industry.
Industry Median: 3.47
* Ranked among companies with meaningful Operating Margin % only.

Books-A-Million's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Books-A-Million's Operating Income for the three months ended in Oct. 2015 was $-6.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2015 was $3.1 Mil.


Books-A-Million Operating Margin % Historical Data

The historical data trend for Books-A-Million'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.

Books-A-Million Operating Margin % Chart

Books-A-Million Annual Data
Trend Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.95 -0.85 1.40 -0.31 0.97

Books-A-Million Quarterly Data
Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15
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 -6.98 12.22 -4.93 -4.60 -6.47

Competitive Comparison of Books-A-Million's Operating Margin %

For the Specialty Retail subindustry, Books-A-Million'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.


Books-A-Million's Operating Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Books-A-Million's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Books-A-Million's Operating Margin % falls into.



Books-A-Million 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.

Books-A-Million's Operating Margin % for the fiscal year that ended in Jan. 2015 is calculated as

Operating Margin %=Operating Income (A: Jan. 2015 ) / Revenue (A: Jan. 2015 )
=4.619 / 474.084
=0.97 %

Books-A-Million's Operating Margin % for the quarter that ended in Oct. 2015 is calculated as

Operating Margin %=Operating Income (Q: Oct. 2015 ) / Revenue (Q: Oct. 2015 )
=-6.57 / 101.581
=-6.47 %

* 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.


Books-A-Million  (NAS:BAMM) 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.


Books-A-Million Operating Margin % Related Terms

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


Books-A-Million (Books-A-Million) Business Description

Traded in Other Exchanges
N/A
Address
Books-A-Million Inc was founded in 1917, originally incorporated under the laws of the State of Alabama in 1964 and reincorporated in Delaware in September 1992. The Company is a book retailer located in the eastern United States and operates both superstores and traditional bookstores. The Company operates both superstores and traditional bookstores. The first Superstore was opened in 1987 and operates under the names Books-A-Million and Books and Co. and 2nd & Charles. Traditional bookstores are smaller stores operated under the names Bookland, Books-A-Million and BAM. All store formats generally offer a selection of sellers and other hardcover and paperback books, magazines, toys, games, electronics and gifts. In addition to these retail store formats, it offers its products over the internet at Booksamillion.com. Its retail operations also include the operation of Yogurt Mountain Holding, LLC, a retailer and franchisor of self-serve frozen yogurt stores. It also develops and manages commercial real estate investments through its subsidiary, Preferred Growth Properties, LLC. The Company operates in three reportable operating segments: Retail trade; Electronic commerce trade; and Real estate development and management. In the retail trade segment, it is engaged in the retail sale of books, magazines and general merchandise, including gifts, cards, games, toys, collectibles, music, DVDs, electronic devices and accessories in its retail stores. In the electronic commerce trade segment, it is engaged in the retail sale of books and general merchandise over the internet. The real estate development and management segment is managed separately from the retail trade and electronic commerce trade segments, with a focus on deriving revenues through developing and leasing commercial retail real estate for purposes of earning rental income. The Company promotes its bookstores through the use of traditional direct mail, e-mail and online advertising, as well as point-of-sale materials posted and distributed in its stores. The retail book business is competitive. The Company faces direct competition from other superstores, such as Barnes & Noble, and it also faces competition from mass merchandisers, such as Wal-Mart and Costco, and online retailers, such as Amazon.com, Barnes & Noble and Wal-Mart. Its bookstores also compete with specialty retail stores that offer books in particular subject areas, independent single store operators, variety discounters, drugstores, warehouse clubs, mail order clubs and other retailers offering books. In addition, its bookstores face additional competition from the market for electronic books and may face competition from other categories of retailers entering the retail book market. The Company is subject to general business regulations and laws, as well as regulations and laws specifically governing the Internet and e-commerce.
Executives
Joel R Anderson other: See Remarks Below 202 NORTH COURT STREET, FLORENCE AL 35630
Ronald James Domanico director 3100 JOE JERKINS BLVD, AUSTELL GA 30106
Terrance G Finley officer: CEO & President, other: See Remarks Below 402 INDUSTRIAL LANE, C/O BOOKS A MILLION, BIRMINGHAM AL 35211
Clyde B Anderson director, 10 percent owner, officer: Executive Chairman, other: See Remarks Below BOOKS A MILLION INC, 402INDUSTRIAL LANE, BIRMING AL 35211
Albert C Johnson director 3172 CROSSINGS DRIVE, BIRMINGHAM AL 35242
Rogers William H Jr director 214 N TRYON STREET, CHARLOTTE NC 28202
Sandra B Cochran director, officer: PRESIDENT & CEO, other: SEE REMARKS BELOW 305 HARTMANN DRIVE, LEBANON TN 37087

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