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Kingdee International Software Group Co (FRA:KDIC) Operating Margin % : -11.49% (As of Jun. 2024)


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What is Kingdee International Software Group Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Kingdee International Software Group Co's Operating Income for the six months ended in Jun. 2024 was €-42.2 Mil. Kingdee International Software Group Co's Revenue for the six months ended in Jun. 2024 was €367.5 Mil. Therefore, Kingdee International Software Group Co's Operating Margin % for the quarter that ended in Jun. 2024 was -11.49%.

The historical rank and industry rank for Kingdee International Software Group Co's Operating Margin % or its related term are showing as below:

FRA:KDIC' s Operating Margin % Range Over the Past 10 Years
Min: -16.21   Med: 7.6   Max: 16.79
Current: -6.73


FRA:KDIC's Operating Margin % is ranked worse than
69.52% of 2756 companies
in the Software industry
Industry Median: 3.665 vs FRA:KDIC: -6.73

Kingdee International Software Group Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Kingdee International Software Group Co's Operating Income for the six months ended in Jun. 2024 was €-42.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was €-51.9 Mil.

Warning Sign:

Kingdee International Software Group Co Ltd has never been profitable in the past 3 years. It lost money every year.


Kingdee International Software Group Co Operating Margin % Historical Data

The historical data trend for Kingdee International Software Group Co'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.

Kingdee International Software Group Co Operating Margin % Chart

Kingdee International Software Group Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.57 -16.21 -16.00 -14.36 -8.38

Kingdee International Software Group Co Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 -26.80 -4.12 -15.63 -2.42 -11.49

Competitive Comparison of Kingdee International Software Group Co's Operating Margin %

For the Software - Application subindustry, Kingdee International Software Group Co'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.


Kingdee International Software Group Co's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Kingdee International Software Group Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Kingdee International Software Group Co's Operating Margin % falls into.



Kingdee International Software Group Co 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.

Kingdee International Software Group Co's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=-61.153 / 729.351
=-8.38 %

Kingdee International Software Group Co'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 )
=-42.229 / 367.521
=-11.49 %

* 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.


Kingdee International Software Group Co  (FRA:KDIC) 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.


Kingdee International Software Group Co Operating Margin % Related Terms

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Kingdee International Software Group Co Business Description

Traded in Other Exchanges
Address
Kingdee Software Park, No. 2 Kejinan 12 Road, South District, Hi-Tech Industrial Park, Nanshan District, Guangdong Province, Shenzhen, CHN
Kingdee International Software Group Co Ltd is engaged in cloud services, including enterprise cloud services, small & micro business finance cloud services, and industry cloud services; and enterprise resource planning business, including development and sales of software products. it has three operating segments; Cloud services business Including enterprise cloud services, small & micro business finance cloud services, and industry cloud services, ERP business and others including sales of software and hardware products, provision of software implementation, software solution consulting, maintenance, upgrade and other supporting services, and others, and Investment Properties operating business include the Operation of investment properties.

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