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AlarmForce Industries (AlarmForce Industries) Operating Margin % : 2.10% (As of Jul. 2017)


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What is AlarmForce Industries Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. AlarmForce Industries's Operating Income for the three months ended in Jul. 2017 was $0.17 Mil. AlarmForce Industries's Revenue for the three months ended in Jul. 2017 was $7.90 Mil. Therefore, AlarmForce Industries's Operating Margin % for the quarter that ended in Jul. 2017 was 2.10%.

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


ARFCF's Operating Margin % is not ranked *
in the Business Services industry.
Industry Median: 6.2
* Ranked among companies with meaningful Operating Margin % only.

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

AlarmForce Industries's Operating Income for the three months ended in Jul. 2017 was $0.17 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2017 was $5.27 Mil.


AlarmForce Industries Operating Margin % Historical Data

The historical data trend for AlarmForce Industries'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.

AlarmForce Industries Operating Margin % Chart

AlarmForce Industries Annual Data
Trend Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.63 15.11 20.05 10.06 0.24

AlarmForce Industries Quarterly Data
Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 -39.76 8.62 10.27 22.29 2.10

Competitive Comparison of AlarmForce Industries's Operating Margin %

For the Security & Protection Services subindustry, AlarmForce Industries'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.


AlarmForce Industries's Operating Margin % Distribution in the Business Services Industry

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

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



AlarmForce Industries 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.

AlarmForce Industries's Operating Margin % for the fiscal year that ended in Oct. 2016 is calculated as

Operating Margin %=Operating Income (A: Oct. 2016 ) / Revenue (A: Oct. 2016 )
=0.103 / 42.533
=0.24 %

AlarmForce Industries's Operating Margin % for the quarter that ended in Jul. 2017 is calculated as

Operating Margin %=Operating Income (Q: Jul. 2017 ) / Revenue (Q: Jul. 2017 )
=0.166 / 7.9
=2.10 %

* 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.


AlarmForce Industries  (OTCPK:ARFCF) 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.


AlarmForce Industries Operating Margin % Related Terms

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AlarmForce Industries (AlarmForce Industries) Business Description

Traded in Other Exchanges
N/A
Address
AlarmForce Industries Inc is a Canada based company provides security based solutions. It primarily offers security alarm monitoring, personal emergency response monitoring, video surveillance and related services. The company provides home security systems, which includes home security; home automation; smoke, flood, and carbon monoxide detection, and Bundles. The company's business security systems include business security and video, business automation and customized solutions. The industry serves both residential and commercial market. Geographically the firm offers services to subscribers throughout Canada and selected centres across the United States of America. AlarmForce derives most of the revenue from the sale of security-based products.

AlarmForce Industries (AlarmForce Industries) Headlines

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