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Furniture Brands International, (FRA:FBN1) Operating Margin % : -16.94% (As of Jun. 2013)


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What is Furniture Brands International, Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Furniture Brands International,'s Operating Income for the three months ended in Jun. 2013 was €-32.7 Mil. Furniture Brands International,'s Revenue for the three months ended in Jun. 2013 was €193.3 Mil. Therefore, Furniture Brands International,'s Operating Margin % for the quarter that ended in Jun. 2013 was -16.94%.

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


FRA:FBN1's Operating Margin % is not ranked *
in the Furnishings, Fixtures & Appliances industry.
Industry Median: 5.44
* Ranked among companies with meaningful Operating Margin % only.

Furniture Brands International,'s 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Furniture Brands International,'s Operating Income for the three months ended in Jun. 2013 was €-32.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2013 was €-77.9 Mil.


Furniture Brands International, Operating Margin % Historical Data

The historical data trend for Furniture Brands International,'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.

Furniture Brands International, Operating Margin % Chart

Furniture Brands International, 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 -23.63 -14.10 -3.88 -4.02 -4.11

Furniture Brands International, Quarterly Data
Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13
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 -2.19 -6.19 -9.04 -7.47 -16.94

Competitive Comparison of Furniture Brands International,'s Operating Margin %

For the Furnishings, Fixtures & Appliances subindustry, Furniture Brands International,'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.


Furniture Brands International,'s Operating Margin % Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Furniture Brands International,'s Operating Margin % distribution charts can be found below:

* The bar in red indicates where Furniture Brands International,'s Operating Margin % falls into.



Furniture Brands International, 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.

Furniture Brands International,'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 )
=-33.585 / 817.111
=-4.11 %

Furniture Brands International,'s Operating Margin % for the quarter that ended in Jun. 2013 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2013 ) / Revenue (Q: Jun. 2013 )
=-32.736 / 193.278
=-16.94 %

* 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.


Furniture Brands International,  (FRA:FBN1) 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.


Furniture Brands International, Operating Margin % Related Terms

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Furniture Brands International, (FRA:FBN1) Business Description

Traded in Other Exchanges
N/A
Address
Furniture Brands International, Inc., is a Delaware corporation, which was organized in 1921 as a holding company. The Company is engaged in designing, manufacturing, sourcing and retailing of home furnishings. It markets products through a wide range of channels, including its own Thomasville retail stores and through interior designers, multi-line/independent retailers and mass merchant stores. Its portfolio includes Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and La Barge. Through these brands, the Company offers case goods, consisting of bedroom, dining room, and living room wood furniture; stationary upholstery products, consisting of sofas, loveseats, sectionals, and chairs; motion upholstered furniture, consisting of recliners and sleep sofas; occasional furniture, consisting of wood, metal and glass tables, accent pieces, home entertainment centers, and home office furniture; and decorative accessories and accent pieces. The Company's brands are featured in every price and product category in the residential furniture industry. Each of its brands targets specific customers in relation to style and price point. The raw materials used in manufacturing its products include lumber, veneers, plywood, fiberboard, particleboard, steel, paper, hardware, adhesives, finishing materials, glass, mirrored glass, fabrics, leathers, metals, stone, synthetics and upholstered filling material. The Company's products compete against domestic manufacturers, importers, and foreign manufacturers entering the United States market; as well as increased direct importing by some larger retailers. Its competitors include: Ashley Furniture Industries, Inc.; La-Z-Boy Incorporated; Ethan Allen Interiors Inc., and many other home furnishings retailers and manufacturers. The elements of competition include price, style, quality, service, brand and marketing.

Furniture Brands International, (FRA:FBN1) Headlines

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