Operating Margin % is calculated as Operating Income divided by its Revenue. Houston American Energy's Operating Income for the
three
months ended in Dec. 2023 was $-0.38 Mil. Houston American Energy's Revenue for the
three
months ended in Dec. 2023 was $0.25 Mil. Therefore, Houston American Energy's Operating Margin % for the quarter that ended in Dec. 2023 was -153.04%.
Warning Sign:
Houston American Energy Corp operating margin has been in a 5-year decline. The average rate of decline per year is -27.6%.
The historical rank and industry rank for Houston American Energy's Operating Margin % or its related term are showing as below:
HUSA'
s Operating Margin % Range Over the Past 10 Years
Min: -1243.98 Med: -255.95 Max: -14.34
Current: -214.11
HUSA's Operating Margin % is ranked worse than 92.8% of 972
companies
in the Oil & Gas industry
Industry Median: 8.055
vs HUSA: -214.11
Houston American Energy's 5-Year Average Operating Margin % Growth Rate was -27.60% per year.
Houston American Energy's Operating Income for the
three
months ended in Dec. 2023 was $-0.38 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-1.70 Mil.
Houston American Energy Operating Margin % Historical Data
The historical data trend for Houston American Energy'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 Oil & Gas E&P subindustry, Houston American Energy'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.
Houston American Energy Operating Margin % Distribution
For the Oil & Gas industry and Energy sector, Houston American Energy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Houston American Energy's Operating Margin % falls into.
Houston American Energy 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.
Houston American Energy'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.
Houston American Energy (AMEX:HUSA) 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.
Houston American Energy Operating Margin % Related Terms
Thank you for viewing the detailed overview of Houston American Energy's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Houston American Energy (Houston American Energy) Business Description
Houston American Energy Corp is an independent oil and gas company focused on the development, exploration, exploitation, acquisition, and production of natural gas and crude oil properties. Its properties, and operations, are in the U.S. Permian Basin, the U.S. Gulf Coast region, particularly Texas and Louisiana, and in the South American country of Colombia. The company's an exploration and development projects are focused on existing property interests, and future acquisition of additional property interests, in the Texas Permian Basin, the onshore Texas and Louisiana Gulf Coast region, and in the South American country of Colombia. The Company majorly has operations in two geographical areas, the United States and Colombia.
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