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Koninklijke KPN NV (Koninklijke KPN NV) Operating Margin % : 24.70% (As of Dec. 2023)


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What is Koninklijke KPN NV Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Koninklijke KPN NV's Operating Income for the six months ended in Dec. 2023 was $748 Mil. Koninklijke KPN NV's Revenue for the six months ended in Dec. 2023 was $3,028 Mil. Therefore, Koninklijke KPN NV's Operating Margin % for the quarter that ended in Dec. 2023 was 24.70%.

Good Sign:

Koninklijke KPN NV operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Koninklijke KPN NV's Operating Margin % or its related term are showing as below:

KKPNY' s Operating Margin % Range Over the Past 10 Years
Min: 10.89   Med: 15.73   Max: 24.36
Current: 24.36


KKPNY's Operating Margin % is ranked better than
86.09% of 381 companies
in the Telecommunication Services industry
Industry Median: 8.26 vs KKPNY: 24.36

Koninklijke KPN NV's 5-Year Average Operating Margin % Growth Rate was 11.60% per year.

Koninklijke KPN NV's Operating Income for the six months ended in Dec. 2023 was $748 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $1,440 Mil.


Koninklijke KPN NV Operating Margin % Historical Data

The historical data trend for Koninklijke KPN NV'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.

Koninklijke KPN NV Operating Margin % Chart

Koninklijke KPN NV 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 15.55 17.41 19.39 22.54 24.36

Koninklijke KPN NV Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 19.92 21.77 23.28 24.00 24.70

Competitive Comparison of Koninklijke KPN NV's Operating Margin %

For the Telecom Services subindustry, Koninklijke KPN NV'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.


Koninklijke KPN NV's Operating Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Koninklijke KPN NV's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Koninklijke KPN NV's Operating Margin % falls into.



Koninklijke KPN NV 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.

Koninklijke KPN NV'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 )
=1444.929 / 5931.298
=24.36 %

Koninklijke KPN NV'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 )
=748.092 / 3028.353
=24.70 %

* 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.


Koninklijke KPN NV  (OTCPK:KKPNY) 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.


Koninklijke KPN NV Operating Margin % Related Terms

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Koninklijke KPN NV (Koninklijke KPN NV) Business Description

Address
Wilhelminakade 123, Rotterdam, NLD, 3072 AP
KPN is the incumbent telecom operator in the Netherlands. It has close to 40% share of the broadband market and 20% of the postpaid mobile market, mainly competing with VodafoneZiggo (mobile and fixed) and T-Mobile Netherlands (mainly mobile). KPN is rolling out fiber to the home in the Netherlands and expects to have most of the country covered by 2025.

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