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Kawasaki Heavy Industries (Kawasaki Heavy Industries) Operating Margin % : 7.39% (As of Dec. 2023)


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What is Kawasaki Heavy Industries Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Kawasaki Heavy Industries's Operating Income for the three months ended in Dec. 2023 was $236 Mil. Kawasaki Heavy Industries's Revenue for the three months ended in Dec. 2023 was $3,193 Mil. Therefore, Kawasaki Heavy Industries's Operating Margin % for the quarter that ended in Dec. 2023 was 7.39%.

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

KWHIY' s Operating Margin % Range Over the Past 10 Years
Min: -0.36   Med: 3.9   Max: 6.23
Current: -0.19


KWHIY's Operating Margin % is ranked worse than
78.92% of 2970 companies
in the Industrial Products industry
Industry Median: 6.965 vs KWHIY: -0.19

Kawasaki Heavy Industries's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Kawasaki Heavy Industries's Operating Income for the three months ended in Dec. 2023 was $236 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-13 Mil.

Warning Sign:

Kawasaki Heavy Industries Ltd has recorded a loss in operating income at least once over the past 3 years.


Kawasaki Heavy Industries Operating Margin % Historical Data

The historical data trend for Kawasaki Heavy Industries'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.

Kawasaki Heavy Industries Operating Margin % Chart

Kawasaki Heavy Industries 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 4.01 3.78 -0.36 2.98 4.58

Kawasaki Heavy Industries 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 10.79 0.40 1.03 -11.96 7.39

Competitive Comparison of Kawasaki Heavy Industries's Operating Margin %

For the Specialty Industrial Machinery subindustry, Kawasaki Heavy Industries'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.


Kawasaki Heavy Industries's Operating Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Kawasaki Heavy Industries's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Kawasaki Heavy Industries's Operating Margin % falls into.



Kawasaki Heavy Industries 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.

Kawasaki Heavy Industries'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 )
=591.34 / 12910.022
=4.58 %

Kawasaki Heavy Industries'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 )
=236.003 / 3192.966
=7.39 %

* 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.


Kawasaki Heavy Industries  (OTCPK:KWHIY) 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.


Kawasaki Heavy Industries Operating Margin % Related Terms

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Kawasaki Heavy Industries (Kawasaki Heavy Industries) Business Description

Traded in Other Exchanges
Address
Kobe Crystal Tower, 1-3, Higashikawasaki-cho 1-chome, Chuo-ku, Kobe, JPN, 650-8680
Kawasaki Heavy Industries Ltd is a diversified industrial company serving land, sea, and air markets. It produces heavy machinery, including multiple land vehicles, large tankers, submarines, energy systems, and aerospace equipment. In addition, the company works to produce environmental plants, industrial plants, precision machinery, robots, and infrastructure equipment. One aspect of the company focuses on manufacturing motorcycles under its well-known Kawasaki brand. Another focus and revenue generator is the division geared towards manufacturing commercial aircraft and jet engines. Sales generated in Asia account for the majority of total revenue, but the company does have a presence in the Americas and Europe.