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Inmet Mining (FRA:MMC) Operating Margin % : 14.13% (As of Dec. 2012)


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What is Inmet Mining Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Inmet Mining's Operating Income for the three months ended in Dec. 2012 was €28.0 Mil. Inmet Mining's Revenue for the three months ended in Dec. 2012 was €198.0 Mil. Therefore, Inmet Mining's Operating Margin % for the quarter that ended in Dec. 2012 was 14.13%.

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


FRA:MMC's Operating Margin % is not ranked *
in the Metals & Mining industry.
Industry Median: 1.76
* Ranked among companies with meaningful Operating Margin % only.

Inmet Mining's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Inmet Mining's Operating Income for the three months ended in Dec. 2012 was €28.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2012 was €317.2 Mil.


Inmet Mining Operating Margin % Historical Data

The historical data trend for Inmet Mining'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.

Inmet Mining Operating Margin % Chart

Inmet Mining 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 36.97 40.23 42.90 35.64 39.79

Inmet Mining Quarterly Data
Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12
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 243.45 44.81 32.03 49.15 14.13

Competitive Comparison of Inmet Mining's Operating Margin %

For the Other Industrial Metals & Mining subindustry, Inmet Mining'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.


Inmet Mining's Operating Margin % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Inmet Mining's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Inmet Mining's Operating Margin % falls into.



Inmet Mining 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.

Inmet Mining'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 )
=340.8 / 856.47
=39.79 %

Inmet Mining's Operating Margin % for the quarter that ended in Dec. 2012 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2012 ) / Revenue (Q: Dec. 2012 )
=27.987 / 198.019
=14.13 %

* 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.


Inmet Mining  (FRA:MMC) 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.


Inmet Mining Operating Margin % Related Terms

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Inmet Mining (FRA:MMC) Business Description

Traded in Other Exchanges
N/A
Address
Website
Inmet Mining Corporation is a Canadian-based global mining company that produces base metals with a focus on copper. It operates and develops underground and open pit mines safely, responsibly and cost effectively. The Company has three operating properties and one development property around the world. Çayeli is an underground mine on the Black Sea coast of northeastern Turkey. It produces copper and zinc concentrates, which are sold to international and domestic smelters and traders. Las Cruces is an open pit mine in southern Spain. Las Cruces uses leaching and electrowinning technology to produce copper cathode which are sold to buyers in the Spanish and Mediterranean markets. Pyhäsalmi is an underground copper and zinc mine in central Finland. It produces copper, zinc and pyrite concentrates. Copper and zinc concentrates are sold under long-term contracts to smelters in Finland. Pyrite is sold under contract to customers in Europe and Asia as well as in the spot market. Cobre Panama is an open pit copper development project in Panama.