GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Labrador Iron Ore Royalty Corp (OTCPK:LIFZF) » Definitions » Operating Margin %

Labrador Iron Ore Royalty (Labrador Iron Ore Royalty) Operating Margin % : 75.86% (As of Dec. 2023)


View and export this data going back to 2012. Start your Free Trial

What is Labrador Iron Ore Royalty Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Labrador Iron Ore Royalty's Operating Income for the three months ended in Dec. 2023 was $30.8 Mil. Labrador Iron Ore Royalty's Revenue for the three months ended in Dec. 2023 was $40.6 Mil. Therefore, Labrador Iron Ore Royalty's Operating Margin % for the quarter that ended in Dec. 2023 was 75.86%.

Good Sign:

Labrador Iron Ore Royalty Corp operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Labrador Iron Ore Royalty's Operating Margin % or its related term are showing as below:

LIFZF' s Operating Margin % Range Over the Past 10 Years
Min: 72.81   Med: 74.8   Max: 76.84
Current: 75.63


LIFZF's Operating Margin % is ranked better than
99.5% of 603 companies
in the Steel industry
Industry Median: 4.65 vs LIFZF: 75.63

Labrador Iron Ore Royalty's 5-Year Average Operating Margin % Growth Rate was 0.60% per year.

Labrador Iron Ore Royalty's Operating Income for the three months ended in Dec. 2023 was $30.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $112.4 Mil.


Labrador Iron Ore Royalty Operating Margin % Historical Data

The historical data trend for Labrador Iron Ore Royalty'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.

Labrador Iron Ore Royalty Operating Margin % Chart

Labrador Iron Ore Royalty 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 74.92 75.57 76.84 76.04 75.63

Labrador Iron Ore Royalty Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 75.32 75.38 75.81 75.41 75.86

Competitive Comparison of Labrador Iron Ore Royalty's Operating Margin %

For the Steel subindustry, Labrador Iron Ore Royalty'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.


Labrador Iron Ore Royalty's Operating Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Labrador Iron Ore Royalty's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Labrador Iron Ore Royalty's Operating Margin % falls into.



Labrador Iron Ore Royalty 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.

Labrador Iron Ore Royalty'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 )
=112.838 / 149.199
=75.63 %

Labrador Iron Ore Royalty'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 )
=30.827 / 40.637
=75.86 %

* 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.


Labrador Iron Ore Royalty  (OTCPK:LIFZF) 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.


Labrador Iron Ore Royalty Operating Margin % Related Terms

Thank you for viewing the detailed overview of Labrador Iron Ore Royalty's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Labrador Iron Ore Royalty (Labrador Iron Ore Royalty) Business Description

Traded in Other Exchanges
Address
235 Water Street, P.O. Box 610, Suite 1000, Scotia Centre, St. John’s, NL, CAN, A1C 5L3
Labrador Iron Ore Royalty Corporation is a Canadian corporation. The company generates all of its revenue from its equity investment in Iron Ore Company of Canada, (IOC) and its IOC royalty and commission interests. IOC operates a major iron mine near Labrador City, Newfoundland, and Labrador on lands leased from LIORC. Directly and through its wholly-owned subsidiary, Hollinger-Hanna, LIORC owns an equity interest in IOC and receives gross overriding royalty on all iron ore products produced from the leased lands that are sold and shipped by IOC and commission on IOC's sales of iron ore. IOC is a Canadian producer of iron ore pellets and concentrate, serving customers worldwide.

Labrador Iron Ore Royalty (Labrador Iron Ore Royalty) Headlines

From GuruFocus

Canadian Small-Cap Fund Makes Big Purchase in Iron Ore Company

By Kyle Ferguson Kyle Ferguson 01-10-2016