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Finning International (Finning International) Operating Margin % : 8.67% (As of Dec. 2023)


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What is Finning International Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Finning International's Operating Income for the three months ended in Dec. 2023 was $172 Mil. Finning International's Revenue for the three months ended in Dec. 2023 was $1,986 Mil. Therefore, Finning International's Operating Margin % for the quarter that ended in Dec. 2023 was 8.67%.

Good Sign:

Finning International Inc operating margin is expanding. Margin expansion is usually a good sign.

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

FINGF' s Operating Margin % Range Over the Past 10 Years
Min: 3.43   Med: 6.7   Max: 8.86
Current: 8.86


FINGF's Operating Margin % is ranked better than
71.53% of 144 companies
in the Industrial Distribution industry
Industry Median: 5.815 vs FINGF: 8.86

Finning International's 5-Year Average Operating Margin % Growth Rate was 8.70% per year.

Finning International's Operating Income for the three months ended in Dec. 2023 was $172 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $692 Mil.


Finning International Operating Margin % Historical Data

The historical data trend for Finning International'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.

Finning International Operating Margin % Chart

Finning International 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 5.62 7.10 7.47 8.24 8.86

Finning International 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 7.99 9.03 8.60 9.17 8.67

Competitive Comparison of Finning International's Operating Margin %

For the Industrial Distribution subindustry, Finning International'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.


Finning International's Operating Margin % Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Finning International's Operating Margin % distribution charts can be found below:

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



Finning International 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.

Finning International'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 )
=695.438 / 7846.601
=8.86 %

Finning International'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 )
=172.182 / 1985.689
=8.67 %

* 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.


Finning International  (OTCPK:FINGF) 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.


Finning International Operating Margin % Related Terms

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Finning International (Finning International) Business Description

Traded in Other Exchanges
Address
19100 94th Avenue, Surrey, BC, CAN, V4N 5C3
Finning International Inc is a dealer and distributor of heavy-duty machinery and parts of the Caterpillar brand. The company sells and rents Caterpillar machinery to the mining, construction, petroleum, forestry, and power system application industries. Finning International further provides parts and services for equipment and engines to its customers via its owned distribution network and buys and sells used equipment domestically and internationally after reconditioning or rebuilding the machinery. The company operates in Canada, South America, UK and Ireland, and others.

Finning International (Finning International) Headlines

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