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Cospower Engineering (BOM:543172) Operating Margin % : -9.62% (As of Sep. 2023)


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What is Cospower Engineering Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Cospower Engineering's Operating Income for the six months ended in Sep. 2023 was ₹-6.8 Mil. Cospower Engineering's Revenue for the six months ended in Sep. 2023 was ₹70.5 Mil. Therefore, Cospower Engineering's Operating Margin % for the quarter that ended in Sep. 2023 was -9.62%.

Warning Sign:

Cospower Engineering Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -2.2%.

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

BOM:543172' s Operating Margin % Range Over the Past 10 Years
Min: 2.01   Med: 8.93   Max: 13.83
Current: 2.01


BOM:543172's Operating Margin % is ranked worse than
58.14% of 2463 companies
in the Hardware industry
Industry Median: 3.69 vs BOM:543172: 2.01

Cospower Engineering's 5-Year Average Operating Margin % Growth Rate was -2.20% per year.

Cospower Engineering's Operating Income for the six months ended in Sep. 2023 was ₹-6.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was ₹3.5 Mil.


Cospower Engineering Operating Margin % Historical Data

The historical data trend for Cospower Engineering'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.

Cospower Engineering Operating Margin % Chart

Cospower Engineering Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial 7.78 12.27 13.03 13.83 5.35

Cospower Engineering Semi-Annual Data
Mar17 Mar18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.89 20.03 -7.39 9.95 -9.62

Competitive Comparison of Cospower Engineering's Operating Margin %

For the Electronic Components subindustry, Cospower Engineering'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.


Cospower Engineering's Operating Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Cospower Engineering's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Cospower Engineering's Operating Margin % falls into.



Cospower Engineering 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.

Cospower Engineering's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=7.518 / 140.536
=5.35 %

Cospower Engineering's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=-6.783 / 70.479
=-9.62 %

* 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.


Cospower Engineering  (BOM:543172) 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.


Cospower Engineering Operating Margin % Related Terms

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Cospower Engineering (BOM:543172) Business Description

Traded in Other Exchanges
N/A
Address
Chincholi Bunder Road, 403, Chandra-Raj Building, Behind Vivanta Hospital, Malad (West), Mumbai, MH, IND, 400064
Cospower Engineering Ltd is engaged in the business of manufacturing of electrical panels, harmonic filters and substations, and equipment mounting structures. It provides turnkey services which involve supply, installation, commissioning, testing, and comprehensive maintenance of electric products. The company has extended its product range to other power-related products that are needed to complete the electrical system. It offers under one roof a complete package of electrical systems and solutions. Its business comprises of manufacturing and supplying of re-active power compensation systems, harmonic filters, and other engineering goods.

Cospower Engineering (BOM:543172) Headlines

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