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Subaru (Subaru) Operating Margin % : 14.49% (As of Dec. 2023)


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What is Subaru Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Subaru's Operating Income for the three months ended in Dec. 2023 was $1,291 Mil. Subaru's Revenue for the three months ended in Dec. 2023 was $8,910 Mil. Therefore, Subaru's Operating Margin % for the quarter that ended in Dec. 2023 was 14.49%.

Warning Sign:

Subaru Corp operating margin has been in a 5-year decline. The average rate of decline per year is -12.6%.

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

FUJHY' s Operating Margin % Range Over the Past 10 Years
Min: 3.34   Med: 9.41   Max: 17.5
Current: 9.52


FUJHY's Operating Margin % is ranked better than
75.66% of 1282 companies
in the Vehicles & Parts industry
Industry Median: 5.08 vs FUJHY: 9.52

Subaru's 5-Year Average Operating Margin % Growth Rate was -12.60% per year.

Subaru's Operating Income for the three months ended in Dec. 2023 was $1,291 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $2,973 Mil.


Subaru Operating Margin % Historical Data

The historical data trend for Subaru'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.

Subaru Operating Margin % Chart

Subaru Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.75 6.30 3.62 3.34 7.08

Subaru 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 9.78 5.50 7.78 8.99 14.49

Competitive Comparison of Subaru's Operating Margin %

For the Auto Manufacturers subindustry, Subaru'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.


Subaru's Operating Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Subaru's Operating Margin % distribution charts can be found below:

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



Subaru 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.

Subaru's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=2000.1 / 28238.415
=7.08 %

Subaru'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 )
=1291.471 / 8910.471
=14.49 %

* 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.


Subaru  (OTCPK:FUJHY) 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.


Subaru Operating Margin % Related Terms

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


Subaru (Subaru) Business Description

Traded in Other Exchanges
Address
Ebisu Subaru Building, 1-20-8, Ebisu, Shibuya-ku, Tokyo, JPN, 150-8554
Subaru Corp is a Japan-based company engaged in the automobile manufacturing business. The company is split into three segments: Automotive Business Unit, Aerospace Company, and Other Businesses. The Automotive Business, which constitutes the vast majority of the company's revenue, manufactures, repairs, and sells passenger cars and their components under the Subaru brand. The Aerospace Company includes airplanes and aerospace-related machinery and components. The Other Businesses segment consists of Industrial product, and real estate lease, among others. A vast majority of the sales is derived from North America.

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