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Summerset Group Holdings (ASX:SNZ) Operating Margin % : -1.09% (As of Dec. 2023)


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What is Summerset Group Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Summerset Group Holdings's Operating Income for the six months ended in Dec. 2023 was A$-1.5 Mil. Summerset Group Holdings's Revenue for the six months ended in Dec. 2023 was A$133.1 Mil. Therefore, Summerset Group Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was -1.09%.

Warning Sign:

Summerset Group Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -29.5%.

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

ASX:SNZ' s Operating Margin % Range Over the Past 10 Years
Min: 2.49   Med: 10.63   Max: 15.5
Current: 2.49


ASX:SNZ's Operating Margin % is ranked worse than
55.71% of 648 companies
in the Healthcare Providers & Services industry
Industry Median: 3.91 vs ASX:SNZ: 2.49

Summerset Group Holdings's 5-Year Average Operating Margin % Growth Rate was -29.50% per year.

Summerset Group Holdings's Operating Income for the six months ended in Dec. 2023 was A$-1.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was A$6.1 Mil.


Summerset Group Holdings Operating Margin % Historical Data

The historical data trend for Summerset Group Holdings'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.

Summerset Group Holdings Operating Margin % Chart

Summerset Group Holdings 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 15.28 10.13 5.67 4.88 2.48

Summerset Group Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 0.66 3.56 6.08 6.51 -1.09

Competitive Comparison of Summerset Group Holdings's Operating Margin %

For the Medical Care Facilities subindustry, Summerset Group Holdings'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.


Summerset Group Holdings's Operating Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Summerset Group Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Summerset Group Holdings's Operating Margin % falls into.



Summerset Group Holdings 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.

Summerset Group Holdings'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 )
=6.249 / 251.481
=2.48 %

Summerset Group Holdings'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 )
=-1.454 / 133.115
=-1.09 %

* 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.


Summerset Group Holdings  (ASX:SNZ) 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.


Summerset Group Holdings Operating Margin % Related Terms

Thank you for viewing the detailed overview of Summerset Group Holdings's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Summerset Group Holdings (ASX:SNZ) Business Description

Traded in Other Exchanges
Address
100 Willis Street, Level 27, Majestic Centre, Wellington, NZL, 6011
Summerset Group Holdings Ltd operates retirement villages in New Zealand. The company receives a majority of its revenue from the New Zealand Ministry of Health, which subsidizes fees for eligible aged-care residents. Its revenue is primarily derived from care fees and village services income. Summerset provides a range of care for its residents, including in-home care and 24-hour medical-care centers. In addition to its independent-living villas and apartments, Summerset offers supported-living residences, which include assistance with daily activities like shopping and housekeeping.

Summerset Group Holdings (ASX:SNZ) Headlines

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