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Alexion Pharmaceuticals Inc (NAS:ALXN)
Profitability Rank
8 (As of Jun. 2016)

Alexion Pharmaceuticals Inc has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

• 1. Operating Margin
• 2. Piotroski F-Score
• 3. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
• 4. Consistency of the profitability
• 5. Predictability Rank

Alexion Pharmaceuticals Inc's operating margin for the quarter that ended in Jun. 2016 was 25.85%. As of today, Alexion Pharmaceuticals Inc's Piotroski F-Score is 6.


Definition

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Alexion Pharmaceuticals Inc has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

•1. Operating Margin

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.

Alexion Pharmaceuticals Inc's Operating Margin for the quarter that ended in Jun. 2016 is calculated as:

Operating Margin=Operating Income (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=194.706 / 753.116
=25.85 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

•2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Alexion Pharmaceuticals Inc has an F-score of 6 indicating the company's financial situation is typical for a stable company.

•3. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Alexion Pharmaceuticals Inc operating margin has been in 5-year decline. The average rate of decline per year is -2%.

•4. Consistency of the profitability

•5. Predictability Rank


Related Terms

Financial Strength Rank, Operating Margin, Piotroski F-Score

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