APLD (Applied Digital) Operating Margin % : -35.79% (As of Feb. 2025)

Applied Digital Operating Margin % Chart

Applied Digital Annual Data
	Trend	May04	May05	May06	May07	May08	May20	May21	May22	May23	May24
Operating Margin %		Get a 7-Day Free Trial					-	-	-244.45	-79.53	-49.06

Applied Digital Quarterly Data
	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24	Feb25
Operating Margin %	Get a 7-Day Free Trial															-77.82	-79.17	-24.21	-28.62	-35.79

Competitive Comparison of Applied Digital's Operating Margin %

For the Information Technology Services subindustry, Applied Digital'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.

Applied Digital's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Applied Digital's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Applied Digital's Operating Margin % falls into.

Applied Digital 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.

Applied Digital's Operating Margin % for the fiscal year that ended in May. 2024 is calculated as

Applied Digital's Operating Margin % for the quarter that ended in Feb. 2025 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.

Applied Digital  (NAS:APLD) 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.

Applied Digital Operating Margin % Related Terms

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Applied Digital Business Description