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Nawaloka Hospitals (COL:NHL.N0000) Operating Margin % : 14.37% (As of Jun. 2024)


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What is Nawaloka Hospitals Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Nawaloka Hospitals's Operating Income for the three months ended in Jun. 2024 was රු381 Mil. Nawaloka Hospitals's Revenue for the three months ended in Jun. 2024 was රු2,650 Mil. Therefore, Nawaloka Hospitals's Operating Margin % for the quarter that ended in Jun. 2024 was 14.37%.

Warning Sign:

Nawaloka Hospitals PLC operating margin has been in a 5-year decline. The average rate of decline per year is -4.5%.

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

COL:NHL.N0000' s Operating Margin % Range Over the Past 10 Years
Min: 4.79   Med: 9.78   Max: 17.29
Current: 14.87


COL:NHL.N0000's Operating Margin % is ranked better than
79.7% of 670 companies
in the Healthcare Providers & Services industry
Industry Median: 4.27 vs COL:NHL.N0000: 14.87

Nawaloka Hospitals's 5-Year Average Operating Margin % Growth Rate was -4.50% per year.

Nawaloka Hospitals's Operating Income for the three months ended in Jun. 2024 was රු381 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was රු1,187 Mil.


Nawaloka Hospitals Operating Margin % Historical Data

The historical data trend for Nawaloka Hospitals'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.

Nawaloka Hospitals Operating Margin % Chart

Nawaloka Hospitals Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.58 11.97 14.40 17.29 4.79

Nawaloka Hospitals 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 -6.69 20.94 11.42 18.51 14.37

Competitive Comparison of Nawaloka Hospitals's Operating Margin %

For the Medical Care Facilities subindustry, Nawaloka Hospitals'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.


Nawaloka Hospitals's Operating Margin % Distribution in the Healthcare Providers & Services Industry

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

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



Nawaloka Hospitals 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.

Nawaloka Hospitals'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 )
=445.527 / 9305.061
=4.79 %

Nawaloka Hospitals'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 )
=380.879 / 2650.314
=14.37 %

* 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.


Nawaloka Hospitals  (COL:NHL.N0000) 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.


Nawaloka Hospitals Operating Margin % Related Terms

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Nawaloka Hospitals Business Description

Traded in Other Exchanges
N/A
Address
No. 23, Deshamanya, H.K. Dharmadasa Mawatha, Colombo, LKA, 02
Nawaloka Hospitals PLC is a provider of healthcare services in Sri Lanka. The company's operating segments include Hospital services; Pharmaceutical; Laboratories and Radiology services. The Hospital services segment is engaged in the provision of hospital services to inpatients and outpatients. Some of the products and services offered by Nawaloka include cardiac services, radiology services, specialist consultations services, cosmetic unit services, ophthalmology services, surgical services, and gynaecology services.

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