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Newell Brands (Newell Brands) Operating Margin %

: 3.71% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Newell Brands's Operating Income for the three months ended in Dec. 2023 was $77 Mil. Newell Brands's Revenue for the three months ended in Dec. 2023 was $2,076 Mil. Therefore, Newell Brands's Operating Margin % for the quarter that ended in Dec. 2023 was 3.71%.

Warning Sign:

Newell Brands Inc operating margin has been in a 5-year decline. The average rate of decline per year is -8.6%.

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

NWL' s Operating Margin % Range Over the Past 10 Years
Min: 3.92   Med: 8.52   Max: 12.62
Current: 4.33


NWL's Operating Margin % is ranked worse than
52.35% of 1851 companies
in the Consumer Packaged Goods industry
Industry Median: 4.85 vs NWL: 4.33

Newell Brands's 5-Year Average Operating Margin % Growth Rate was -8.60% per year.

Newell Brands's Operating Income for the three months ended in Dec. 2023 was $77 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $352 Mil.


Newell Brands Operating Margin % Historical Data

The historical data trend for Newell Brands'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.

Newell Brands 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 7.91 9.48 10.28 8.47 4.33

Newell Brands 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 2.45 0.11 6.94 5.86 3.71

Competitive Comparison

For the Household & Personal Products subindustry, Newell Brands'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.


Newell Brands Operating Margin % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Newell Brands's Operating Margin % distribution charts can be found below:

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



Newell Brands 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.

Newell Brands'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 )
=352 / 8133
=4.33 %

Newell Brands'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 )
=77 / 2076
=3.71 %

* 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.


Newell Brands  (NAS:NWL) 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.


Newell Brands Operating Margin % Related Terms

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


Newell Brands (Newell Brands) Business Description

Traded in Other Exchanges
Address
6655 Peachtree Dunwoody Road, Atlanta, GA, USA, 30328
Newell Brands Inc is an American global consumer goods company. The business activities of the group function through five segments namely, Commercial Solutions, Home Appliances, Home Solutions, Learning and Development, Outdoor and Recreation. The learning and Development segment generates most of the revenue for the firm which offers baby gear and infant care products; writing instruments, including markers and highlighters, pens and pencils; art products; activity-based adhesive and cutting products, and labeling solutions.
Executives
Bradford R Turner officer: Sr. VP, Gen. Sounsel & Secy C/O NEWELL BRANDS INC., 6055 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328
Gaoxiang Hu director 16690 COLLINS AVE., SUITE PH-1, SUNNY ISLES BEACH FL 33160
Dennis Senovich officer: Chief Supply Chain Officer 6655 PEACHTREE DUNWOODY RD, ATLANTA GA 30328
Mark J Erceg officer: Chief Financial Officer 248 E. SKYLINE DRIVE, WASHINGTON UT 84780
David Willetts director 16690 COLLINS AVENUE - PH-1, SUNNY ISLES BEACH FL 33160
Brett Icahn director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Melanie Arlene Huet officer: President, Brand Management 6655 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328
Stephanie Stahl director C/O KNOLL, INC., 1235 WATER STREET, EAST GREENVILLE PA 18041
James Craigie director 500 CHARLES EWING BLVD, EWING NJ 08628
Mather Courtney director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Maria Fernanda Mejia officer: CEO, International ONE KELLOGG SQUARE, PO BOX 3599, BATTLE CREEK MI 49016-3599
Carl C Icahn 10 percent owner C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160
Icahn Partners Lp 10 percent owner 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Icahn Partners Master Fund Lp 10 percent owner 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Kristine Kay Malkoski officer: Business Unit CEO - Food 6655 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328