SELECT id, `name`, primary_key, `key`, treemapgroup, name_cn, zacks_table_name, compare_key, compare_display_name from gurufocu_main.financial_definition where termpagedisplay=1 and `key` = 'operatingmargin' HLIT (Harmonic) Operating Margin %
GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Harmonic Inc (NAS:HLIT) » Definitions » Operating Margin %

Harmonic (Harmonic) Operating Margin %

: 5.77% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Harmonic's Operating Income for the three months ended in Dec. 2023 was $9.6 Mil. Harmonic's Revenue for the three months ended in Dec. 2023 was $167.1 Mil. Therefore, Harmonic's Operating Margin % for the quarter that ended in Dec. 2023 was 5.77%.

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

HLIT' s Operating Margin % Range Over the Past 10 Years
Min: -18.3   Med: -1.6   Max: 7.82
Current: 3.78

HLIT's Operating Margin % is ranked better than
51.14% of 2462 companies
in the Hardware industry
Industry Median: 3.64 vs HLIT: 3.78

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

Harmonic's Operating Income for the three months ended in Dec. 2023 was $9.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $23.0 Mil.

Harmonic Operating Margin % Historical Data

The historical data trend for Harmonic'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.

Harmonic Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.03 -2.67 3.73 7.82 3.78

Harmonic Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % 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 Premium Member Only Premium Member Only Premium Member Only 10.76 7.14 6.39 -6.19 5.77
Competitive Comparison

For the Communication Equipment subindustry, Harmonic'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.

Harmonic Operating Margin % Distribution

For the Hardware industry and Technology sector, Harmonic's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Harmonic's Operating Margin % falls into.


Harmonic 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.

Harmonic'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 )
=22.981 / 607.907
=3.78 %

Harmonic'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 )
=9.633 / 167.092
=5.77 %

* 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.

Harmonic  (NAS:HLIT) 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.

Harmonic Operating Margin % Related Terms

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

Harmonic (Harmonic) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Harmonic Inc (NAS:HLIT) » Definitions » Operating Margin %
Comparable Companies
EXTR KN INFN DGII VIAV VSAT ITRN AAOI AVNW NTGR CSCO SHSE:601138 MSI HPE OHEL:NOKIA SHSE:688036 OSTO:ERIC B SZSE:000063 ZBRA JNPR
Traded in Other Exchanges
HMC:Germany
Address
2590 Orchard Parkway, San Jose, CA, USA, 95131
Website
https://www.harmonicinc.com
Harmonic Inc designs and manufactures video infrastructure products and system solutions to deliver video and broadband services to consumer devices. The firm operates in two segments: Video, which sells video processing, production, and playout solutions to cable operators and satellite and telecommunications providers; and Broadband which sells broadband access solutions and related services. Majority of the revenue generated from the company is from United States.
Executives
Walter Jankovic officer: Chief Financial Officer 2950 ORCHARD PARKWAY, SAN JOSE CA 95131
Jeremy Rosenberg officer: Interim CFO & SVP Bus Dev 2590 ORCHARD PARKWAY, SAN JOSE CA 95131
Patrick Harshman officer: President, BAN Division 2950 ORCHARD PARKWAY, SAN JOSE CA 95131
Nimrod Ben-natan officer: VP, Solutions & Strategy 2950 ORCHARD PARKWAY, SAN JOSE CA 95131
Neven Haltmayer officer: Vice President, R&D 549 BALTIC WAY, SUNNYVALE CA 94089
Sanjay Kalra officer: Chief Financial Officer HARMONIC INC., 4300 NORTH FIRST STREET, SAN JOSE CA 95134
Ian Graham officer: SVP, Intl Sales & Video Svcs 2950 ORCHARD PARKWAY, SAN JOSE CA 95131
Sophia Kim director 2590 ORCHARD PARKWAY, SAN JOSE CA 95131
Nikos Theodosopoulos director C/O ARISTA NETWORKS, INC., 5453 GREAT AMERICA PARKWAY, SANTA CLARA CA 95054
Daniel T Whalen director 2055 BENJAMIN CIRCLE, WALL NJ 07719
David Krall director C/O AVID TECHNOLOGY INC, ONE PARK WEST, TEWKSBURY MA 01876
Eric Louvet officer: SVP Sales NA & APAC 4300 NORTH FIRST STREET, SAN JOSE CA 95134
Susan Swenson director C/O PALM INC, 5470 GREAT AMERICAN PARKWAY MS12116, SANTA CLARA CA 95052
Deborah Clifford director 4300 NORTH FIRST STREET, SAN JOSE CA 95134
William F Reddersen director