GURUFOCUS.COM » STOCK LIST » Technology » Software » A2B Australia Ltd (OTCPK:CGAAY) » Definitions » Operating Margin %

A2B Australia (A2B Australia) Operating Margin %

: 2.23% (As of Dec. 2023)
View and export this data going back to 2011. Start your Free Trial

Operating Margin % is calculated as Operating Income divided by its Revenue. A2B Australia's Operating Income for the six months ended in Dec. 2023 was $1.1 Mil. A2B Australia's Revenue for the six months ended in Dec. 2023 was $49.6 Mil. Therefore, A2B Australia's Operating Margin % for the quarter that ended in Dec. 2023 was 2.23%.

The historical rank and industry rank for A2B Australia's Operating Margin % or its related term are showing as below:

CGAAY' s Operating Margin % Range Over the Past 10 Years
Min: -53   Med: 6.04   Max: 35.76
Current: 5.07


CGAAY's Operating Margin % is ranked better than
55.02% of 2757 companies
in the Software industry
Industry Median: 3.06 vs CGAAY: 5.07

A2B Australia's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

A2B Australia's Operating Income for the six months ended in Dec. 2023 was $1.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $5.1 Mil.

Warning Sign:

A2B Australia Ltd had lost money in 67% of the time over the past 3quarters.


A2B Australia Operating Margin % Historical Data

The historical data trend for A2B Australia'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.

A2B Australia Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.33 -16.52 -53.00 -39.36 1.89

A2B Australia Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 -41.70 -37.46 -5.08 7.82 2.23

Competitive Comparison

For the Software - Infrastructure subindustry, A2B Australia'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.


A2B Australia Operating Margin % Distribution

For the Software industry and Technology sector, A2B Australia's Operating Margin % distribution charts can be found below:

* The bar in red indicates where A2B Australia's Operating Margin % falls into.



A2B Australia 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.

A2B Australia's Operating Margin % for the fiscal year that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=1.795 / 94.87
=1.89 %

A2B Australia'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 )
=1.104 / 49.615
=2.23 %

* 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.


A2B Australia  (OTCPK:CGAAY) 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.


A2B Australia Operating Margin % Related Terms

Thank you for viewing the detailed overview of A2B Australia's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


A2B Australia (A2B Australia) Business Description

Traded in Other Exchanges
Address
9-13 O’Riordan Street, Alexandria, Sydney, NSW, AUS, 2015
A2B Australia Ltd provides payment and other services to taxi operators in Australia and also operates taxis itself. Its brands include 13cabs, Cabcharge, Silver Service, MTI, Spotto, EFT Solutions, and Giraffe payments. The company derives revenue from the Taxi service fee; Network subscription fees and others.

A2B Australia (A2B Australia) Headlines

From GuruFocus

Full Year 2023 A2B Australia Ltd Earnings Call Transcript

By GuruFocus Research 02-13-2024