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Treatt (Treatt) Operating Margin %

: 15.02% (As of Sep. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Treatt's Operating Income for the six months ended in Sep. 2023 was $13.3 Mil. Treatt's Revenue for the six months ended in Sep. 2023 was $88.4 Mil. Therefore, Treatt's Operating Margin % for the quarter that ended in Sep. 2023 was 15.02%.

Good Sign:

Treatt PLC operating margin is expanding. Margin expansion is usually a good sign.

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

TTTRF' s Operating Margin % Range Over the Past 10 Years
Min: 9.63   Med: 12.01   Max: 17.17
Current: 12.43


TTTRF's Operating Margin % is ranked better than
75.1% of 1530 companies
in the Chemicals industry
Industry Median: 6.235 vs TTTRF: 12.43

Treatt's 5-Year Average Operating Margin % Growth Rate was 0.40% per year.

Treatt's Operating Income for the six months ended in Sep. 2023 was $13.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $22.5 Mil.


Treatt Operating Margin % Historical Data

The historical data trend for Treatt'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.

Treatt Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.78 13.84 17.17 11.25 12.43

Treatt Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 16.97 9.93 12.44 9.99 15.02

Competitive Comparison

For the Specialty Chemicals subindustry, Treatt'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.


Treatt Operating Margin % Distribution

For the Chemicals industry and Basic Materials sector, Treatt's Operating Margin % distribution charts can be found below:

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



Treatt 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.

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

Operating Margin %=Operating Income (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=22.675 / 182.422
=12.43 %

Treatt's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=13.285 / 88.423
=15.02 %

* 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.


Treatt  (OTCPK:TTTRF) 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.


Treatt Operating Margin % Related Terms

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Treatt (Treatt) Business Description

Traded in Other Exchanges
Address
Skyliner Way, Bury St. Edmunds, Suffolk, GBR, IP32 7FR
Treatt PLC operates in the fragrance and FMCG industries. It is engaged in the manufacturing and supply of ingredient solutions for the flavor, fragrance, and FMCG markets. The company offers natural extracts and ingredients across a range of product categories: citrus, tea, coffee, health & wellness, fruit & vegetables, herbs, spices & florals, and high impact & aroma chemicals. Geographically, the company generates revenue from United Kingdom, Germany, Ireland, USA, China and other regions. Majority of the revenue for the company is generated from its business in USA.

Treatt (Treatt) Headlines

From GuruFocus

This Specialty Chemicals Company Is a Real Treatt

By The City Letter 04-18-2023