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Hong Kong Exchanges and Clearing (Hong Kong Exchanges and Clearing) Operating Margin %

: 50.16% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Hong Kong Exchanges and Clearing's Operating Income for the three months ended in Dec. 2023 was $241 Mil. Hong Kong Exchanges and Clearing's Revenue for the three months ended in Dec. 2023 was $480 Mil. Therefore, Hong Kong Exchanges and Clearing's Operating Margin % for the quarter that ended in Dec. 2023 was 50.16%.

Warning Sign:

Hong Kong Exchanges and Clearing Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -2.7%.

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

HKXCY' s Operating Margin % Range Over the Past 10 Years
Min: 54.89   Med: 62.43   Max: 70.14
Current: 54.9


HKXCY's Operating Margin % is ranked better than
83% of 659 companies
in the Capital Markets industry
Industry Median: 13.52 vs HKXCY: 54.90

Hong Kong Exchanges and Clearing's 5-Year Average Operating Margin % Growth Rate was -2.70% per year.

Hong Kong Exchanges and Clearing's Operating Income for the three months ended in Dec. 2023 was $241 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $1,083 Mil.


Hong Kong Exchanges and Clearing Operating Margin % Historical Data

The historical data trend for Hong Kong Exchanges and Clearing'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.

Hong Kong Exchanges and Clearing Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 62.78 66.76 70.14 61.46 54.89

Hong Kong Exchanges and Clearing Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 60.00 57.51 56.10 55.59 50.16

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Hong Kong Exchanges and Clearing'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.


Hong Kong Exchanges and Clearing Operating Margin % Distribution

For the Capital Markets industry and Financial Services sector, Hong Kong Exchanges and Clearing's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Hong Kong Exchanges and Clearing's Operating Margin % falls into.



Hong Kong Exchanges and Clearing 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.

Hong Kong Exchanges and Clearing'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 )
=1085.559 / 1977.643
=54.89 %

Hong Kong Exchanges and Clearing'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 )
=240.851 / 480.166
=50.16 %

* 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.


Hong Kong Exchanges and Clearing  (OTCPK:HKXCY) 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.


Hong Kong Exchanges and Clearing Operating Margin % Related Terms

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Hong Kong Exchanges and Clearing (Hong Kong Exchanges and Clearing) Business Description

Traded in Other Exchanges
Address
8 Connaught Place, 8th Floor, Two Exchange Square, Central, Hong Kong, HKG
Hong Kong Exchanges and Clearing is a vertically integrated securities exchange business offering listing, data, trading, clearing and settlement services across equities, debt and derivatives. HKEx, like Hong Kong itself, functions as a gateway between China and the rest of the world. HKEx serves as a preferred listing venue for Chinese companies outside of China and, through the Connect Scheme, offers two-way trading for a growing group of financial products with the Shanghai Stock Exchange and the Shenzhen Stock Exchange.

Hong Kong Exchanges and Clearing (Hong Kong Exchanges and Clearing) Headlines

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