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Nortel Inversora (Nortel Inversora) Operating Margin % : 18.72% (As of Sep. 2017)


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What is Nortel Inversora Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Nortel Inversora's Operating Income for the three months ended in Sep. 2017 was $179 Mil. Nortel Inversora's Revenue for the three months ended in Sep. 2017 was $955 Mil. Therefore, Nortel Inversora's Operating Margin % for the quarter that ended in Sep. 2017 was 18.72%.

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


NTL's Operating Margin % is not ranked *
in the Telecommunication Services industry.
Industry Median: 8.33
* Ranked among companies with meaningful Operating Margin % only.

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

Nortel Inversora's Operating Income for the three months ended in Sep. 2017 was $179 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2017 was $716 Mil.


Nortel Inversora Operating Margin % Historical Data

The historical data trend for Nortel Inversora'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.

Nortel Inversora Operating Margin % Chart

Nortel Inversora Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.03 16.94 16.29 15.80 15.36

Nortel Inversora Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 13.60 18.02 20.07 18.80 18.72

Competitive Comparison of Nortel Inversora's Operating Margin %

For the Telecom Services subindustry, Nortel Inversora'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.


Nortel Inversora's Operating Margin % Distribution in the Telecommunication Services Industry

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

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



Nortel Inversora 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.

Nortel Inversora's Operating Margin % for the fiscal year that ended in Dec. 2016 is calculated as

Operating Margin %=Operating Income (A: Dec. 2016 ) / Revenue (A: Dec. 2016 )
=516.512 / 3363.633
=15.36 %

Nortel Inversora's Operating Margin % for the quarter that ended in Sep. 2017 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2017 ) / Revenue (Q: Sep. 2017 )
=178.846 / 955.346
=18.72 %

* 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.


Nortel Inversora  (NYSE:NTL) 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.


Nortel Inversora Operating Margin % Related Terms

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Nortel Inversora (Nortel Inversora) Business Description

Traded in Other Exchanges
N/A
Address
Nortel Inversora SA is a holding company. The company provides fixed-line public telecommunications services and basic telephone services. Nortel operates through the following segments: Fixed Services; Personal Mobile Services; and Nucleo Mobile Services. The Fixed Services division provides a local area, national long-distance and international communications, supplementary services, data transmission, internet services, IT solution outsourcing and sales of equipment. Personal Mobile Services and Nucleo Mobile Services division offerings include voice communications, high-speed mobile internet content and applications download, multimedia messaging services, among others; and sale of mobile communication devices.

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