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Algoma Central (Algoma Central) Operating Margin %

: 15.88% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Algoma Central's Operating Income for the three months ended in Dec. 2023 was $23.8 Mil. Algoma Central's Revenue for the three months ended in Dec. 2023 was $150.1 Mil. Therefore, Algoma Central's Operating Margin % for the quarter that ended in Dec. 2023 was 15.88%.

Good Sign:

Algoma Central Corp operating margin is expanding. Margin expansion is usually a good sign.

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

AGMJF' s Operating Margin % Range Over the Past 10 Years
Min: 3.64   Med: 10.31   Max: 15.02
Current: 10.33


AGMJF's Operating Margin % is ranked better than
60.23% of 973 companies
in the Transportation industry
Industry Median: 7.6 vs AGMJF: 10.33

Algoma Central's 5-Year Average Operating Margin % Growth Rate was 4.10% per year.

Algoma Central's Operating Income for the three months ended in Dec. 2023 was $23.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $56.0 Mil.


Algoma Central Operating Margin % Historical Data

The historical data trend for Algoma Central'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.

Algoma Central 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 10.28 13.58 15.02 12.91 10.33

Algoma Central 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 19.66 -28.98 17.88 18.80 15.88

Competitive Comparison

For the Marine Shipping subindustry, Algoma Central'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.


Algoma Central Operating Margin % Distribution

For the Transportation industry and Industrials sector, Algoma Central's Operating Margin % distribution charts can be found below:

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



Algoma Central 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.

Algoma Central'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 )
=55.555 / 537.582
=10.33 %

Algoma Central'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 )
=23.83 / 150.061
=15.88 %

* 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.


Algoma Central  (OTCPK:AGMJF) 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.


Algoma Central Operating Margin % Related Terms

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Algoma Central (Algoma Central) Business Description

Traded in Other Exchanges
Address
63 Church Street, Suite 600, St. Catharines, ON, CAN, L2R 3C4
Algoma Central Corp owns and operates a fleet of dry and liquid bulk carriers operating on the Great Lakes, St. Lawrence Waterway. The company's Canadian flag fleet consists of self-unloading dry-bulk carriers, gearless dry-bulk carriers, and product tankers. The company operates its business through six segments that are Domestic Dry-Bulk, Product Tankers, Ocean Self-Unloaders, Corporate, Investment Properties, and Global Short Sea Shipping. The company earns revenues from marine operations through contracts of affreightment, time charters, and pool revenue.