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SONVY (Sonova Holding AG) Operating Margin % : 19.45% (As of Mar. 2024)


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What is Sonova Holding AG Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Sonova Holding AG's Operating Income for the six months ended in Mar. 2024 was $410 Mil. Sonova Holding AG's Revenue for the six months ended in Mar. 2024 was $2,109 Mil. Therefore, Sonova Holding AG's Operating Margin % for the quarter that ended in Mar. 2024 was 19.45%.

Good Sign:

Sonova Holding AG operating margin is expanding. Margin expansion is usually a good sign.

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

SONVY' s Operating Margin % Range Over the Past 10 Years
Min: 17.48   Med: 19.04   Max: 22.6
Current: 18.47


SONVY's Operating Margin % is ranked better than
85.04% of 822 companies
in the Medical Devices & Instruments industry
Industry Median: 0.795 vs SONVY: 18.47

Sonova Holding AG's 5-Year Average Operating Margin % Growth Rate was 1.00% per year.

Sonova Holding AG's Operating Income for the six months ended in Mar. 2024 was $410 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $750 Mil.


Sonova Holding AG Operating Margin % Historical Data

The historical data trend for Sonova Holding AG'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.

Sonova Holding AG Operating Margin % Chart

Sonova Holding AG Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.48 19.03 22.60 19.98 18.47

Sonova Holding AG Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
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 22.04 19.70 20.25 17.43 19.45

Competitive Comparison of Sonova Holding AG's Operating Margin %

For the Medical Devices subindustry, Sonova Holding AG'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.


Sonova Holding AG's Operating Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Sonova Holding AG's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Sonova Holding AG's Operating Margin % falls into.



Sonova Holding AG 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.

Sonova Holding AG's Operating Margin % for the fiscal year that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=753.883 / 4081.589
=18.47 %

Sonova Holding AG's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=410.083 / 2108.823
=19.45 %

* 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.


Sonova Holding AG  (OTCPK:SONVY) 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.


Sonova Holding AG Operating Margin % Related Terms

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Sonova Holding AG Business Description

Traded in Other Exchanges
Address
Laubisrutistrasse 28, Stafa, CHE, CH-8712
Sonova is one of the world's largest manufacturers and distributors of hearing aids. The company is based in Switzerland and distributes its products in more than 100 countries through its internal sales team and independent retailers. It also sells cochlear implants through its advanced bionics subsidiary and recently acquired Sennheiser's consumer division to expand into audio technologies.