United Therapeutics (United Therapeutics) Operating Margin %

: 42.31% (As of Dec. 2023)

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Operating Margin % is calculated as Operating Income divided by its Revenue. United Therapeutics's Operating Income for the three months ended in Dec. 2023 was $260 Mil. United Therapeutics's Revenue for the three months ended in Dec. 2023 was $615 Mil. Therefore, United Therapeutics's Operating Margin % for the quarter that ended in Dec. 2023 was 42.31%.

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

UTHR' s Operating Margin % Range Over the Past 10 Years
Min: -12.95 Med: 48.59 Max: 66.41
Current: 50.91

UTHR's Operating Margin % is ranked better than
98.25% of 1026 companies
in the Biotechnology industry
Industry Median: -179.96 vs UTHR: 50.91

United Therapeutics's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

United Therapeutics's Operating Income for the three months ended in Dec. 2023 was $260 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $1,185 Mil.

United Therapeutics Operating Margin % Historical Data

The historical data trend for United Therapeutics'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.

United Therapeutics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Margin %

-12.95

40.02

32.98

50.60

50.91

United Therapeutics Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Margin %																35.73	56.11	52.54	53.66	42.31

Competitive Comparison

For the Biotechnology subindustry, United Therapeutics'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.

United Therapeutics Operating Margin % Distribution

For the Biotechnology industry and Healthcare sector, United Therapeutics's Operating Margin % distribution charts can be found below:

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

United Therapeutics 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.

United Therapeutics'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 )
	=	1184.9	/	2327.5
	=	50.91 %

United Therapeutics'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 )
	=	260.1	/	614.7
	=	42.31 %

United Therapeutics (NAS:UTHR) 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 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.

United Therapeutics Operating Margin % Related Terms

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United Therapeutics (United Therapeutics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » United Therapeutics Corp (NAS:UTHR) » Definitions » Operating Margin %

Comparable Companies

Traded in Other Exchanges

UTH:Germany

Address

1040 Spring Street, Silver Spring, MD, USA, 20910

Website

https://www.unither.com

United Therapeutics specializes in drug development for pulmonary arterial hypertension, a rare and progressive disease marked by abnormally high blood pressure in the arteries of the lungs. The company's therapies for PAH largely focus on the prostacyclin pathway, and many of its treatments are based on the same molecule, treprostinil. Most of the company's sales are generated within the United States. United Therapeutics also markets a pediatric oncology drug, but its focus largely remains in pulmonary arterial hypertension.

Executives

Paul A Mahon	officer: EVP & General Counsel
Nilda Mesa	director	C/O UNITED THERAPEUTICS CORPORATION, 1040 SPRING STREET, SILVER SPRING MD 20910
Christopher Causey	director
Martine A Rothblatt	director, officer: Chief Executive Officer
Louis W Sullivan	director
Judy D. Olian	director	2000 AVENUE OF THE STARS 12TH FL, LOS ANGELES CA 90067
Michael Benkowitz	officer: President and COO	C/O UNITED THERAPEUTICS CORP, 1040 SPRING STREET, SILVER SPRING MD 20910
Christopher Patusky	director
Raymond Dwek	director
Linda Maxwell	director	1040 SPRING STREET, SILVER SPRING NC 27709
Tommy G Thompson	director	7711 CARONDELET, ST. LOUIS MO 63105
Katherine J Klein	director	STEINBERG HALL-DIETRICH HALL, 3620 LOCUST WALK, PHILADELPHIA PA 19104
Richard Giltner	director	C/O UNITED THERAPEUTICS CORPORTION, 1735 CONNECTICUT AVE. NW, WASHINGTON DC 20009
Roger Jeffs	director, officer: President and COO
David Zaccardelli	officer: EVP & Chief Operating Officer	300 TRI STATE INTERNATIONAL, SUITE 272, LINCOLNSHIRE IL 60069