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Societatea Energetica Electrica (BSE:EL) Operating Margin % : -4.00% (As of Jun. 2024)


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What is Societatea Energetica Electrica Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Societatea Energetica Electrica's Operating Income for the three months ended in Jun. 2024 was lei-78 Mil. Societatea Energetica Electrica's Revenue for the three months ended in Jun. 2024 was lei1,961 Mil. Therefore, Societatea Energetica Electrica's Operating Margin % for the quarter that ended in Jun. 2024 was -4.00%.

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

BSE:EL' s Operating Margin % Range Over the Past 10 Years
Min: -9.14   Med: 3.19   Max: 11.52
Current: 0.99


BSE:EL's Operating Margin % is ranked worse than
87.35% of 490 companies
in the Utilities - Regulated industry
Industry Median: 14.64 vs BSE:EL: 0.99

Societatea Energetica Electrica's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Societatea Energetica Electrica's Operating Income for the three months ended in Jun. 2024 was lei-78 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was lei69 Mil.

Warning Sign:

Societatea Energetica Electrica SA had lost money in 75% of the time over the past 12quarters.


Societatea Energetica Electrica Operating Margin % Historical Data

The historical data trend for Societatea Energetica Electrica'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.

Societatea Energetica Electrica Operating Margin % Chart

Societatea Energetica Electrica 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 1.46 4.14 -9.14 -1.44 11.52

Societatea Energetica Electrica Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Jun24
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 -1.09 -23.42 -15.34 19.09 -4.00

Competitive Comparison of Societatea Energetica Electrica's Operating Margin %

For the Utilities - Regulated Electric subindustry, Societatea Energetica Electrica'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.


Societatea Energetica Electrica's Operating Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Societatea Energetica Electrica's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Societatea Energetica Electrica's Operating Margin % falls into.



Societatea Energetica Electrica 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.

Societatea Energetica Electrica'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 )
=1130.799 / 9816.593
=11.52 %

Societatea Energetica Electrica's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=-78.34 / 1960.655
=-4.00 %

* 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.


Societatea Energetica Electrica  (BSE:EL) 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.


Societatea Energetica Electrica Operating Margin % Related Terms

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Societatea Energetica Electrica Business Description

Traded in Other Exchanges
Address
No. 9, Grigore Alexandrescu Street, 1st District, Bucharest, ROU, 010621
Societatea Energetica Electrica SA is a Romanian company, which is engaged in operation and development of electricity distribution networks and activities related to electricity supply to final consumers. It mainly acts as an electricity distribution operator and the main electricity supplier in North Transylvania, South Transylvania, and North Muntenia. The company operates through following segments: Electricity & gas supply, which is engaged in purchasing and supplying electricity and gas to end consumers; Electricity distribution, which provides electricity distribution services; External electricity network services, which offers repairs, maintenance and other services for electricity networks owned by other distributors; Electricity generation segment; and Headquarters.