GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Orkla ASA (OTCPK:ORKLY) » Definitions » Operating Margin %

Orkla ASA (Orkla ASA) Operating Margin % : 8.59% (As of Dec. 2023)


View and export this data going back to 2002. Start your Free Trial

What is Orkla ASA Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Orkla ASA's Operating Income for the three months ended in Dec. 2023 was $144 Mil. Orkla ASA's Revenue for the three months ended in Dec. 2023 was $1,682 Mil. Therefore, Orkla ASA's Operating Margin % for the quarter that ended in Dec. 2023 was 8.59%.

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

ORKLY' s Operating Margin % Range Over the Past 10 Years
Min: 9.96   Med: 11.39   Max: 12.6
Current: 9.96


ORKLY's Operating Margin % is ranked better than
72.95% of 1856 companies
in the Consumer Packaged Goods industry
Industry Median: 4.85 vs ORKLY: 9.96

Orkla ASA's 5-Year Average Operating Margin % Growth Rate was -0.80% per year.

Orkla ASA's Operating Income for the three months ended in Dec. 2023 was $144 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $634 Mil.


Orkla ASA Operating Margin % Historical Data

The historical data trend for Orkla 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.

Orkla ASA Operating Margin % Chart

Orkla 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 11.48 11.36 12.05 12.60 10.06

Orkla 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 11.51 9.92 10.04 11.36 8.59

Competitive Comparison of Orkla ASA's Operating Margin %

For the Packaged Foods subindustry, Orkla 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.


Orkla ASA's Operating Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Orkla ASA's Operating Margin % distribution charts can be found below:

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



Orkla 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.

Orkla 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 )
=646.767 / 6426.621
=10.06 %

Orkla 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 )
=144.463 / 1681.517
=8.59 %

* 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.


Orkla ASA  (OTCPK:ORKLY) 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.


Orkla ASA Operating Margin % Related Terms

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


Orkla ASA (Orkla ASA) Business Description

Address
Drammensveien 149, Oslo, NOR, NO-0277
Orkla ASA is a branded consumer goods company, originally from Norway. Its business consists of the following divisions: Orkla Foods, Orkla Confectionery and Snacks, Orkla Care, Orkla Food Ingredients, and Orkla Consumer & Financial Investments business. Orkla offers its products to the grocery sector, specialty retailers, out-of-home sectors, and the bakery market. Orkla's main geographical markets are the Nordic and Norway regions, which account for more than half of the total sales. The Orkla Group also sells some of its product categories in Central Europe and India.

Orkla ASA (Orkla ASA) Headlines

From GuruFocus

Orkla ASA Stock Appears To Be Fairly Valued

By GF Value GF Value 05-15-2021

Orkla: the Norwegian Kraft

By Holmes Osborne, CFA Holmes Osborne, CFA 10-05-2016

Orkla Posts Another Great Quarter

By Holmes Osborne, CFA Holmes Osborne, CFA 11-02-2017

Orkla Has Another Great Quarter

By Holmes Osborne, CFA Holmes Osborne, CFA 11-03-2016

Orkla Has Another Great Year

By Holmes Osborne, CFA Holmes Osborne, CFA 02-10-2017

Orkla, The Norwegian Kraft, Has Another Great Quarter

By Holmes Osborne, CFA Holmes Osborne, CFA 07-19-2016