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Maximus (Maximus) Operating Margin %

: 8.10% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Maximus's Operating Income for the three months ended in Dec. 2023 was $108 Mil. Maximus's Revenue for the three months ended in Dec. 2023 was $1,327 Mil. Therefore, Maximus's Operating Margin % for the quarter that ended in Dec. 2023 was 8.10%.

Warning Sign:

Maximus Inc operating margin has been in a 5-year decline. The average rate of decline per year is -13.2%.

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

MMS' s Operating Margin % Range Over the Past 10 Years
Min: 6.01   Med: 11.31   Max: 13.25
Current: 6.57


MMS's Operating Margin % is ranked better than
51.41% of 1062 companies
in the Business Services industry
Industry Median: 6.275 vs MMS: 6.57

Maximus's 5-Year Average Operating Margin % Growth Rate was -13.20% per year.

Maximus's Operating Income for the three months ended in Dec. 2023 was $108 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $328 Mil.


Maximus Operating Margin % Historical Data

The historical data trend for Maximus'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.

Maximus Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.98 8.33 9.60 6.80 6.01

Maximus 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 5.99 5.18 4.91 7.87 8.10

Competitive Comparison

For the Specialty Business Services subindustry, Maximus'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.


Maximus Operating Margin % Distribution

For the Business Services industry and Industrials sector, Maximus's Operating Margin % distribution charts can be found below:

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



Maximus 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.

Maximus's Operating Margin % for the fiscal year that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=294.794 / 4904.728
=6.01 %

Maximus'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 )
=107.51 / 1327.041
=8.10 %

* 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.


Maximus  (NYSE:MMS) 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.


Maximus Operating Margin % Related Terms

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


Maximus (Maximus) Business Description

Traded in Other Exchanges
Address
1600 Tysons Boulevard, McLean, VA, USA, 22102
Maximus Inc is an operator of government health and human services programs in the United States, United Kingdom, Canada, Australia, and Saudi Arabia. The company offers business solutions to improve the cost-effectiveness, efficiency, and quality of government-sponsored benefit programs, such as Medicaid, Medicare, Health Insurance BC, and child support programmes. Most of its revenue is derived from long-term contractual arrangements with governments around the world. The company generates maximum revenue from the U.S. Federal Services segment.
Executives
Teresa Weipert officer: General Mgr US Federal Segment 1891 METRO CENTER DRIVE, RESTON VA 20190
Ilene R. Baylinson officer: Group General Manager 1891 METRO CENTER DRIVE, RESTON VA 20190
Michelle F. Link officer: Chief Human Resources Officer 1891 METRO CENTER DRIVE, RESTON VA 20190
Gayathri Rajan director 1891 METRO CENTER DRIVE, RESTON X1 20190
David Mutryn officer: Chief Financial Officer 1891 METRO CENTER DRIVE, RESTON VA 20190
Theresa D Golinvaux officer: Principal Accounting Officer 9300 LEE HIGHWAY, FAIRFAX VA 20131
John Thomas Martinez officer: Secretary and General Counsel 1600 TYSONS BLVD, #1400, MCLEAN VA 22102
Michael J. Warren director C/O WALKER & DUNLOP, INC., 7272 WISCONSIN AVENUE, SUITE 1300, BETHESDA MD 20814
Bruce Caswell other: Group President - Human Svcs 11419 SUNSET HILLS ROAD, RESTON VA 20190-5207
Raymond B Ruddy director C/O MAXIMUS INC, 11419 SUNSET HILLS ROAD, RESTON VA 20190
David Francis officer: General Counsel C/O MAXIMUS INC, 11419 SUNSET HILLS RD, RESTON VA 20190
John J Haley director 901 N GLEBE ROAD, ARLINGTON VA 22203
Richard A Montoni director, officer: CEO and Director C/O MAXIMUS INC, 11419 SUNSET HILLS RD, RESTON VA 20190
Richard John Nadeau officer: Chief Financial Officer 1300 WILSON BLVD., SUITE 400, ARLINGTON VA 22209
Peter Pond director