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Extendicare (Extendicare) Operating Margin %

: 5.71% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Extendicare's Operating Income for the three months ended in Dec. 2023 was $14.9 Mil. Extendicare's Revenue for the three months ended in Dec. 2023 was $261.0 Mil. Therefore, Extendicare's Operating Margin % for the quarter that ended in Dec. 2023 was 5.71%.

Warning Sign:

Extendicare Inc operating margin has been in a 5-year decline. The average rate of decline per year is -9.5%.

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

EXETF' s Operating Margin % Range Over the Past 10 Years
Min: 2.12   Med: 5.44   Max: 8.52
Current: 4.83


EXETF's Operating Margin % is ranked better than
53.78% of 649 companies
in the Healthcare Providers & Services industry
Industry Median: 3.81 vs EXETF: 4.83

Extendicare's 5-Year Average Operating Margin % Growth Rate was -9.50% per year.

Extendicare's Operating Income for the three months ended in Dec. 2023 was $14.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $46.6 Mil.


Extendicare Operating Margin % Historical Data

The historical data trend for Extendicare'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.

Extendicare Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.66 8.52 4.26 2.12 4.82

Extendicare Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 0.47 7.28 2.47 3.64 5.71

Competitive Comparison

For the Medical Care Facilities subindustry, Extendicare'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.


Extendicare Operating Margin % Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Extendicare's Operating Margin % distribution charts can be found below:

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



Extendicare 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.

Extendicare'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 )
=46.931 / 972.687
=4.82 %

Extendicare'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 )
=14.896 / 261.017
=5.71 %

* 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.


Extendicare  (OTCPK:EXETF) 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.


Extendicare Operating Margin % Related Terms

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Extendicare (Extendicare) Business Description

Traded in Other Exchanges
Address
3000 Steeles Avenue East, Suite 700, Markham, ON, CAN, L3R 9W2
Extendicare Inc is a senior care provider in Canada, focused on long-term care and home health care. The company has three main business segments namely Long-term Care, Home Health Care, and Managed Services. The Long-term Care segment, operating under the Extendicare brand, represents 53 owned homes in Ontario, Alberta and Manitoba. The Home Health Care segment, operating under the ParaMed brand, provides more than 9 million hours of home health care services annually in Ontario, Alberta, Manitoba and Nova Scotia. The Managed Services segment, operating under the Extendicare Assist and SGP Purchasing Partner Network brands, provides management, consulting and group purchasing services to other care providers across Canada.

Extendicare (Extendicare) Headlines

From GuruFocus

Extendicare Announces Normal Course Issuer Bid

By GlobeNewswire GlobeNewswire 06-27-2022

Extendicare Completes Acquisition of Lynde Creek Retirement Community

By GlobeNewswire GlobeNewswire 04-11-2018

Extendicare Announces 2020 First Quarter Results

By GlobeNewswire GlobeNewswire 05-14-2020

Extendicare Appoints Dr. Michael R. Guerriere as New President and CEO

By GlobeNewswire GlobeNewswire 09-11-2018

Extendicare Announces December 2018 Dividend of C$0.04 per Share

By GlobeNewswire GlobeNewswire 12-14-2018

Extendicare Provides Business Update Related to COVID-19

By GlobeNewswire GlobeNewswire 04-28-2020