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AKZOF (Akzo Nobel NV) Operating Margin % : 9.71% (As of Sep. 2024)


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What is Akzo Nobel NV Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Akzo Nobel NV's Operating Income for the three months ended in Sep. 2024 was $287 Mil. Akzo Nobel NV's Revenue for the three months ended in Sep. 2024 was $2,961 Mil. Therefore, Akzo Nobel NV's Operating Margin % for the quarter that ended in Sep. 2024 was 9.71%.

Good Sign:

Akzo Nobel NV operating margin is expanding. Margin expansion is usually a good sign.

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

AKZOF' s Operating Margin % Range Over the Past 10 Years
Min: 6.53   Med: 9.36   Max: 11.66
Current: 9.45


AKZOF's Operating Margin % is ranked better than
65.7% of 1522 companies
in the Chemicals industry
Industry Median: 5.815 vs AKZOF: 9.45

Akzo Nobel NV's 5-Year Average Operating Margin % Growth Rate was 2.90% per year.

Akzo Nobel NV's Operating Income for the three months ended in Sep. 2024 was $287 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $1,095 Mil.


Akzo Nobel NV Operating Margin % Historical Data

The historical data trend for Akzo Nobel NV'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.

Akzo Nobel NV Operating Margin % Chart

Akzo Nobel NV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.07 11.29 11.66 6.53 9.65

Akzo Nobel NV Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 12.91 8.46 9.89 9.70 9.71

Competitive Comparison of Akzo Nobel NV's Operating Margin %

For the Specialty Chemicals subindustry, Akzo Nobel NV'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.


Akzo Nobel NV's Operating Margin % Distribution in the Chemicals Industry

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

* The bar in red indicates where Akzo Nobel NV's Operating Margin % falls into.



Akzo Nobel NV 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.

Akzo Nobel NV'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 )
=1122.137 / 11633.588
=9.65 %

Akzo Nobel NV's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=287.458 / 2961.154
=9.71 %

* 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.


Akzo Nobel NV  (OTCPK:AKZOF) 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.


Akzo Nobel NV Operating Margin % Related Terms

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Akzo Nobel NV Business Description

Address
Christian Neefestraat 2, Amsterdam, NH, NLD, 1077 WW
Netherlands-based AkzoNobel is the world's third-largest paint and coatings producer. Europe is the largest market, with around 46% of sales generated in the Europe, Middle East, and Africa, or EMEA, region. Cumulatively, the Asia-Pacific and Latin American divisions have also grown quickly to more than 40% of sales. Construction-related end markets are the most important, but meaningful revenue is also generated from the industrial, consumer goods, and transportation markets.

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