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Asiainfo-Linkage, (FRA:AFB) Operating Margin % : 4.82% (As of Sep. 2013)


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What is Asiainfo-Linkage, Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Asiainfo-Linkage,'s Operating Income for the three months ended in Sep. 2013 was €5.2 Mil. Asiainfo-Linkage,'s Revenue for the three months ended in Sep. 2013 was €107.1 Mil. Therefore, Asiainfo-Linkage,'s Operating Margin % for the quarter that ended in Sep. 2013 was 4.82%.

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


FRA:AFB's Operating Margin % is not ranked *
in the Software industry.
Industry Median: 3.405
* Ranked among companies with meaningful Operating Margin % only.

Asiainfo-Linkage,'s 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Asiainfo-Linkage,'s Operating Income for the three months ended in Sep. 2013 was €5.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2013 was €-195.9 Mil.


Asiainfo-Linkage, Operating Margin % Historical Data

The historical data trend for Asiainfo-Linkage,'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.

Asiainfo-Linkage, Operating Margin % Chart

Asiainfo-Linkage, Annual Data
Trend Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.99 16.27 17.51 11.56 3.97

Asiainfo-Linkage, Quarterly Data
Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13
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 1.66 9.08 2.06 -202.09 4.82

Competitive Comparison of Asiainfo-Linkage,'s Operating Margin %

For the Software - Application subindustry, Asiainfo-Linkage,'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.


Asiainfo-Linkage,'s Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Asiainfo-Linkage,'s Operating Margin % distribution charts can be found below:

* The bar in red indicates where Asiainfo-Linkage,'s Operating Margin % falls into.



Asiainfo-Linkage, 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.

Asiainfo-Linkage,'s Operating Margin % for the fiscal year that ended in Dec. 2012 is calculated as

Operating Margin %=Operating Income (A: Dec. 2012 ) / Revenue (A: Dec. 2012 )
=16.561 / 417.478
=3.97 %

Asiainfo-Linkage,'s Operating Margin % for the quarter that ended in Sep. 2013 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2013 ) / Revenue (Q: Sep. 2013 )
=5.162 / 107.106
=4.82 %

* 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.


Asiainfo-Linkage,  (FRA:AFB) 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.


Asiainfo-Linkage, Operating Margin % Related Terms

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Asiainfo-Linkage, (FRA:AFB) Business Description

Traded in Other Exchanges
N/A
Address
Asiainfo-Linkage, Inc, a Delaware corporation, commenced operations in the United States in 1993. The Company is a provider of telecommunications software solutions and information technology, or IT, related services in China. It also provides variety of services including business operational consulting service, IT architecture planning service, system integration services based on its own products and other third party software and hardware, change of request implementation, maintenance on customer premise and management services. The Company's suite of innovative solutions includes business and operation support systems, network infrastructure solutions, and service application solutions. The products and services it offers to the telecommunications industry include various software product suites, most of which are designed with open architecture to facilitate further development and customization for specific purposes. The Company's core BSS/OSS offering primarily includes convergent billing solutions, CRM and BI systems. It also provides software enhancement and maintenance services for the systems it develop, as well as system integration and other value-added IT consulting and planning services. Its OSS Package is a highly comprehensive and intelligent service fulfilment framework based on OSS fulfilment domain definition in eTOM model and OSS specifications of telecom operators. In OSS Package, process analysis methodology and project implementation methodology enables a rapid implementation of telecom service fulfilment system. It provides process analysis methodology, project implementation methodology, inventory data model, interface integration framework and built-in inventory management templates. Its network management solutions include network access and backbone infrastructure planning, design and implementation for telecommunications and Internet service providers. These services include technical training for its customers, as well as professional maintenance and support services. The Company designs and provides a series of service applications that enable telecommunications operators and service providers to offer value-added services, such as Short Message Service, or SMS, mobile email, mobile entertainment and mobile e-commerce. These applications often involve licensed third-party software that it's customizes or integrate with its proprietary software to provide individualized solutions. The Company's software and services enable its customers to build, maintain, operate, manage and improve their communications infrastructure. Its largest customers are the major telecommunications carriers in China and their provincial subsidiaries, including China Mobile Communications Corporation, or China Mobile, China United Telecommunications Corporation, or China Unicom, and China Telecommunications Corporation, or China Telecom. The Company relies on its own sales force to market and sell its products and services