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Globus Medical (FRA:GM0N) Operating Margin % : 11.72% (As of Dec. 2024)


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What is Globus Medical Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Globus Medical's Operating Income for the three months ended in Dec. 2024 was €74 Mil. Globus Medical's Revenue for the three months ended in Dec. 2024 was €628 Mil. Therefore, Globus Medical's Operating Margin % for the quarter that ended in Dec. 2024 was 11.72%.

Warning Sign:

Globus Medical Inc operating margin has been in a 5-year decline. The average rate of decline per year is -13.3%.

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

FRA:GM0N' s Operating Margin % Range Over the Past 10 Years
Min: 8.72   Med: 22.81   Max: 30.16
Current: 8.72


FRA:GM0N's Operating Margin % is ranked better than
62.94% of 815 companies
in the Medical Devices & Instruments industry
Industry Median: 1.93 vs FRA:GM0N: 8.72

Globus Medical's 5-Year Average Operating Margin % Growth Rate was -13.30% per year.

Globus Medical's Operating Income for the three months ended in Dec. 2024 was €74 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was €204 Mil.


Globus Medical Operating Margin % Historical Data

The historical data trend for Globus Medical'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.

Globus Medical Operating Margin % Chart

Globus Medical Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.63 20.34 23.10 12.87 8.72

Globus Medical Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 4.21 4.87 10.18 7.83 11.72

Competitive Comparison of Globus Medical's Operating Margin %

For the Medical Devices subindustry, Globus Medical'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.


Globus Medical's Operating Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Globus Medical's Operating Margin % distribution charts can be found below:

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


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Globus Medical 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.

Globus Medical's Operating Margin % for the fiscal year that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=209.814 / 2405.984
=8.72 %

Globus Medical's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=73.588 / 627.715
=11.72 %

* 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.


Globus Medical  (FRA:GM0N) 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.


Globus Medical Operating Margin % Related Terms

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Globus Medical Business Description

Traded in Other Exchanges
Address
2560 General Armistead Avenue, Audubon, PA, USA, 19403
Globus Medical Inc is a medical device company that develops and provides healthcare products and solutions to hospitals, physicians, and surgical centers. The firm's products are organized into two categories: musculoskeletal solutions, which include medical devices and instruments used mostly for spinal and orthopedic procedures, and enabling technologies, which include advanced computer systems developed for enhancing surgical capabilities. The vast majority of the company's revenue is generated from musculoskeletal solutions products, and more than half of the revenue is earned in the United States. It also has its presence internationally.

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