GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Huaxin Cement Co Ltd (FRA:RC0) » Definitions » Operating Margin %

Huaxin Cement Co (FRA:RC0) Operating Margin % : 12.04% (As of Sep. 2024)


View and export this data going back to 2022. Start your Free Trial

What is Huaxin Cement Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Huaxin Cement Co's Operating Income for the three months ended in Sep. 2024 was €130 Mil. Huaxin Cement Co's Revenue for the three months ended in Sep. 2024 was €1,080 Mil. Therefore, Huaxin Cement Co's Operating Margin % for the quarter that ended in Sep. 2024 was 12.04%.

Warning Sign:

Huaxin Cement Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -14.2%.

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

FRA:RC0' s Operating Margin % Range Over the Past 10 Years
Min: 7.26   Med: 15.67   Max: 28.25
Current: 12.26


FRA:RC0's Operating Margin % is ranked better than
70.92% of 392 companies
in the Building Materials industry
Industry Median: 7.4 vs FRA:RC0: 12.26

Huaxin Cement Co's 5-Year Average Operating Margin % Growth Rate was -14.20% per year.

Huaxin Cement Co's Operating Income for the three months ended in Sep. 2024 was €130 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was €538 Mil.


Huaxin Cement Co Operating Margin % Historical Data

The historical data trend for Huaxin Cement 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.

Huaxin Cement Co Operating Margin % Chart

Huaxin Cement 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 28.25 27.12 23.53 15.06 14.24

Huaxin Cement Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 16.04 14.65 7.63 13.55 12.04

Competitive Comparison of Huaxin Cement Co's Operating Margin %

For the Building Materials subindustry, Huaxin Cement 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.


Huaxin Cement Co's Operating Margin % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Huaxin Cement Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Huaxin Cement Co's Operating Margin % falls into.



Huaxin Cement 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.

Huaxin Cement 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 )
=617.291 / 4335.348
=14.24 %

Huaxin Cement Co's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=130.013 / 1079.993
=12.04 %

* 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.


Huaxin Cement Co  (FRA:RC0) 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.


Huaxin Cement Co Operating Margin % Related Terms

Thank you for viewing the detailed overview of Huaxin Cement Co's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Huaxin Cement Co Business Description

Traded in Other Exchanges
Address
No.426, Gaoxin Avenue, Tower B, Huaxin Tower, East Lake High-tech Development Zone, Hubei Province, Wuhan, CHN, 430073
Huaxin Cement Co Ltd is engaged in the production and distribution of cement, ready-mix concrete, cement equipment, and cement packaging products. It is also engaged in environmental protection, equipment manufacturing, EPC engineering, Project consulting, and high-tech building materials. Its products include 32.5 type cement, 42.5 type and above cement, Commercial clinker, Concrete, Aggregate, and others. Its geographical segments include China, Tajikistan, and Cambodia, out of which the majority of the revenue is generated from China.

Huaxin Cement Co Headlines

No Headlines