Operating Margin % is calculated as Operating Income divided by its Revenue. Fortune Brands Innovations's Operating Income for the
three
months ended in Dec. 2023 was $173 Mil. Fortune Brands Innovations's Revenue for the
three
months ended in Dec. 2023 was $1,161 Mil. Therefore, Fortune Brands Innovations's Operating Margin % for the quarter that ended in Dec. 2023 was 14.86%.
Good Sign:
Fortune Brands Innovations Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Fortune Brands Innovations's Operating Margin % or its related term are showing as below:
FBIN'
s Operating Margin % Range Over the Past 10 Years
Min: 10.23 Med: 13.17 Max: 17.26
Current: 14.75
FBIN's Operating Margin % is ranked better than 84.62% of 1652
companies
in the Construction industry
Industry Median: 5.215
vs FBIN: 14.75
Fortune Brands Innovations's 5-Year Average Operating Margin % Growth Rate was 5.30% per year.
Fortune Brands Innovations's Operating Income for the
three
months ended in Dec. 2023 was $173 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $683 Mil.
Warning Sign:
Fortune Brands Innovations Inc has recorded a loss in operating income at least once over the past 3 years.
Fortune Brands Innovations Operating Margin % Historical Data
The historical data trend for Fortune Brands Innovations'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.
For the Building Products & Equipment subindustry, Fortune Brands Innovations'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.
Fortune Brands Innovations Operating Margin % Distribution
For the Construction industry and Industrials sector, Fortune Brands Innovations's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fortune Brands Innovations's Operating Margin % falls into.
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.
Fortune Brands Innovations'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.
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.
Fortune Brands Innovations Operating Margin % Related Terms
Thank you for viewing the detailed overview of Fortune Brands Innovations's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Fortune Brands Innovations (Fortune Brands Innovations) Business Description
Fortune Brands Innovations is a leading home and security products company that operates two segments. The company's $2.6 billion plumbing segment, led by the Moen brand, sells faucets, showers, and other plumbing fixtures, and the $2.2 billion outdoors and security segment sells entry doors under the Therma-Tru brand name, Fiberon-branded patio decking, and locks and other security devices under the Master Lock and SentrySafe brand names.
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