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Deere (BUE:DE) Operating Margin % : 17.89% (As of Jan. 2025)


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What is Deere Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Deere's Operating Income for the three months ended in Jan. 2025 was ARS1,553,733 Mil. Deere's Revenue for the three months ended in Jan. 2025 was ARS8,685,345 Mil. Therefore, Deere's Operating Margin % for the quarter that ended in Jan. 2025 was 17.89%.

Good Sign:

Deere & Co operating margin is expanding. Margin expansion is usually a good sign.

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

BUE:DE' s Operating Margin % Range Over the Past 10 Years
Min: 8.66   Med: 12.59   Max: 24.22
Current: 21.79


BUE:DE's Operating Margin % is ranked better than
96.08% of 204 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 7.925 vs BUE:DE: 21.79

Deere's 5-Year Average Operating Margin % Growth Rate was 15.00% per year.

Deere's Operating Income for the three months ended in Jan. 2025 was ARS1,553,733 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2025 was ARS9,457,501 Mil.


Deere Operating Margin % Historical Data

The historical data trend for Deere'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.

Deere Operating Margin % Chart

Deere Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.58 17.81 17.60 24.22 22.62

Deere Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 22.61 24.77 22.50 19.79 17.89

Competitive Comparison of Deere's Operating Margin %

For the Farm & Heavy Construction Machinery subindustry, Deere'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.


Deere's Operating Margin % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's Operating Margin % distribution charts can be found below:

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



Deere 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.

Deere's Operating Margin % for the fiscal year that ended in Oct. 2024 is calculated as

Operating Margin %=Operating Income (A: Oct. 2024 ) / Revenue (A: Oct. 2024 )
=11084190.377 / 49002461.666
=22.62 %

Deere's Operating Margin % for the quarter that ended in Jan. 2025 is calculated as

Operating Margin %=Operating Income (Q: Jan. 2025 ) / Revenue (Q: Jan. 2025 )
=1553732.659 / 8685344.538
=17.89 %

* 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.


Deere  (BUE:DE) 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.


Deere Operating Margin % Related Terms

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


Deere Business Description

Address
One John Deere Place, Moline, IL, USA, 61265
Deere is the world's leading manufacturer of agricultural equipment and a major producer of construction machinery. The company is divided into four reporting segments: production & precision agriculture (PPA), small agriculture & turf (SAT), construction & forestry (CF), and financial services (FS), its captive finance subsidiary. The core PPA business is the largest contributor to sales and profits by far. Geographically, Deere sales are 60% US/Canada, 17% Europe, 14% Latin America, and 9% rest of world. Deere goes to market through a robust dealer network that includes over 2,000 dealer locations in North America with reach into over 100 countries. John Deere financial provides retail financing for machinery to its customers and wholesale financing for dealers.

Deere Headlines

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