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Norske Skogindustrier ASA (Norske Skogindustrier ASA) Operating Margin % : -18.18% (As of Dec. 2023)


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What is Norske Skogindustrier ASA Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Norske Skogindustrier ASA's Operating Income for the three months ended in Dec. 2023 was $-49 Mil. Norske Skogindustrier ASA's Revenue for the three months ended in Dec. 2023 was $271 Mil. Therefore, Norske Skogindustrier ASA's Operating Margin % for the quarter that ended in Dec. 2023 was -18.18%.

Good Sign:

Norske Skog ASA operating margin is expanding. Margin expansion is usually a good sign.

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

NKSJY' s Operating Margin % Range Over the Past 10 Years
Min: -0.1   Med: 2.63   Max: 16.3
Current: 4.06


NKSJY's Operating Margin % is ranked better than
50.87% of 289 companies
in the Forest Products industry
Industry Median: 3.78 vs NKSJY: 4.06

Norske Skogindustrier ASA's 5-Year Average Operating Margin % Growth Rate was 4.80% per year.

Norske Skogindustrier ASA's Operating Income for the three months ended in Dec. 2023 was $-49 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $45 Mil.

Warning Sign:

Norske Skog ASA has recorded a loss in operating income at least once over the past 3 years.


Norske Skogindustrier ASA Operating Margin % Historical Data

The historical data trend for Norske Skogindustrier ASA'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.

Norske Skogindustrier ASA Operating Margin % Chart

Norske Skogindustrier ASA 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 8.64 1.49 2.16 16.30 4.07

Norske Skogindustrier ASA 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 18.26 17.63 8.11 7.00 -18.18

Competitive Comparison of Norske Skogindustrier ASA's Operating Margin %

For the Paper & Paper Products subindustry, Norske Skogindustrier ASA'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.


Norske Skogindustrier ASA's Operating Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Norske Skogindustrier ASA's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Norske Skogindustrier ASA's Operating Margin % falls into.



Norske Skogindustrier ASA 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.

Norske Skogindustrier ASA'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 )
=45.5 / 1117.22
=4.07 %

Norske Skogindustrier ASA'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 )
=-49.197 / 270.537
=-18.18 %

* 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.


Norske Skogindustrier ASA  (OTCPK:NKSJY) 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.


Norske Skogindustrier ASA Operating Margin % Related Terms

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Norske Skogindustrier ASA (Norske Skogindustrier ASA) Business Description

Traded in Other Exchanges
Address
Sjolyst plass 2, Oslo, NOR, 0278
Norske Skog ASA is an industrial company in publication paper, packaging paper, energy production, and bioproducts. Publication paper products comprise both newsprint and magazine paper, both of which are marketed under the NOR brand. Packaging paper includes the recycled containerboard grades test liner and fluting, which are marketed under the STRATO brand. The company's core bioproducts are the nano cellulose product CEBINA and the bio-composite product CEBICO. Norske Skog owns and operates four industrial sites in Europe, and one industrial site in Australasia.

Norske Skogindustrier ASA (Norske Skogindustrier ASA) Headlines

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