Operating Margin % is calculated as Operating Income divided by its Revenue. Sunoco LP's Operating Income for the
three
months ended in Dec. 2023 was $-42 Mil. Sunoco LP's Revenue for the
three
months ended in Dec. 2023 was $5,641 Mil. Therefore, Sunoco LP's Operating Margin % for the quarter that ended in Dec. 2023 was -0.74%.
Good Sign:
Sunoco LP operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Sunoco LP's Operating Margin % or its related term are showing as below:
SUN'
s Operating Margin % Range Over the Past 10 Years
Min: 2.04 Med: 2.93 Max: 4.18
Current: 2.72
SUN's Operating Margin % is ranked worse than 64.2% of 972
companies
in the Oil & Gas industry
Industry Median: 8.055
vs SUN: 2.72
Sunoco LP's 5-Year Average Operating Margin % Growth Rate was 1.80% per year.
Sunoco LP's Operating Income for the
three
months ended in Dec. 2023 was $-42 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $628 Mil.
Warning Sign:
Sunoco LP has recorded a loss in operating income at least once over the past 3 years.
Sunoco LP Operating Margin % Historical Data
The historical data trend for Sunoco LP'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.
For the Oil & Gas Refining & Marketing subindustry, Sunoco LP'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.
Sunoco LP Operating Margin % Distribution
For the Oil & Gas industry and Energy sector, Sunoco LP's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sunoco LP's Operating Margin % falls into.
Sunoco LP 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.
Sunoco LP's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
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 Nokias 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.
Sunoco LP Operating Margin % Related Terms
Thank you for viewing the detailed overview of Sunoco LP's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sunoco LP is a Delaware limited partnership formed in June 2012 by Susser Holdings Corporation or SUSS. In September 2012, the Company completed its initial public offering. The Company, along with its wholly owned subsidiary, is an independent motor fuel distributor by gallons in Texas, and among the distributors of Valero and Chevron branded motor fuel in the United States. The Company also receives rental income from real estate that it leases or subleases. SUSS operated approximately 580 retail convenience stores under its proprietary Stripes convenience store brand at year-end, mainly in growing Texas markets. Stripes is an independent chain of convenience stores in Texas based on store count and retail motor fuel volumes sold. Its business is integral to the success of SUSS' retail operations, and SUSS purchases substantially all of its motor fuel from the Company. In addition to distributing motor fuel, it also distributes other petroleum products such as propane and lube oil, and receives rental income from real estate that it leases or subleases. The Company purchases motor fuel mainly from independent refiners and oil companies and distributes it throughout Texas and in Louisiana, New Mexico and Oklahoma. The Company competes mainly with other independent motor fuel distributors. The Company is subject to various federal, state and local environmental laws and regulations, including those relating to underground storage tanks; the release or discharge of hazardous materials into the air, water and soil; the generation, storage, handling, use, transportation and disposal of regulated materials; the exposure of persons to regulated materials; and the remediation of contaminated soil and groundwater.
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