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tw telecom (FRA:TWM) Operating Margin % : 10.84% (As of Jun. 2014)


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What is tw telecom Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. tw telecom's Operating Income for the three months ended in Jun. 2014 was €33 Mil. tw telecom's Revenue for the three months ended in Jun. 2014 was €309 Mil. Therefore, tw telecom's Operating Margin % for the quarter that ended in Jun. 2014 was 10.84%.

Good Sign:

tw telecom inc operating margin is expanding. Margin expansion is usually a good sign.

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

FRA:TWM' s Operating Margin % Range Over the Past 10 Years
Min: -60.21   Med: 2.73   Max: 15.44
Current: 11.72


FRA:TWM's Operating Margin % is not ranked
in the Telecommunication Services industry.
Industry Median: 9.25 vs FRA:TWM: 11.72

tw telecom's 5-Year Average Operating Margin % Growth Rate was 13.00% per year.

tw telecom's Operating Income for the three months ended in Jun. 2014 was €33 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2014 was €139 Mil.


tw telecom Operating Margin % Historical Data

The historical data trend for tw telecom'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.

tw telecom Operating Margin % Chart

tw telecom Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.41 11.48 13.65 15.44 13.10

tw telecom Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
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 13.68 11.94 13.14 11.01 10.84

Competitive Comparison of tw telecom's Operating Margin %

For the Telecom Services subindustry, tw telecom'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.


tw telecom's Operating Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, tw telecom's Operating Margin % distribution charts can be found below:

* The bar in red indicates where tw telecom's Operating Margin % falls into.



tw telecom 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.

tw telecom's Operating Margin % for the fiscal year that ended in Dec. 2013 is calculated as

Operating Margin %=Operating Income (A: Dec. 2013 ) / Revenue (A: Dec. 2013 )
=149.592 / 1141.648
=13.10 %

tw telecom's Operating Margin % for the quarter that ended in Jun. 2014 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=33.498 / 308.901
=10.84 %

* 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.


tw telecom  (FRA:TWM) 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.


tw telecom Operating Margin % Related Terms

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


tw telecom (FRA:TWM) Business Description

Traded in Other Exchanges
N/A
Address
Tw telecom inc was formed in 1998. The Company together with its wholly-owned subsidiaries provide managed network services, specializing in business Ethernet, data networking, Converged, IP-based virtual private network or "IP VPN", Internet access, voice, including voice over Internet Protocol or "VoIP", and network security services to enterprise organizations, including public sector entities, and carriers throughout the U.S., including global locations. It offers a portfolio of solutions to its customers with predictable and reliable service quality. It designs and deliver scalable and efficient solutions that enable its customers complex and evolving business applications. These solutions emphasize its data networking service offerings, which include an expanding portfolio of business Ethernet data services, managed network services and its converged service offerings comprised of data, Internet, voice, security, remote access and managed routers. It also provides a broad range of traditional services, including a dedicated network service portfolio with private line, special access and private transport services, voice services and secure Internet access. Its customers include enterprise organizations in a wide variety of industry segments, including, among others, the financial services, technology and science, health care, distribution, manufacturing and professional services industries, data centers, cloud application providers, public sector entities, system integrators and communications service providers, including ILECs, CLECs, wireless communications companies and cable companies. Its primary competition is from the ILECs, CLECs and cable companies. The ILECs, primarily AT&T Inc., Verizon Communications, Inc. and CenturyLink Inc., other CLECs and some cable companies offer services substantially similar to some of those it offers and target some of the same customers. The Company is subject to regulation by the Federal Communications Commission ("FCC"), state regulatory authorities and local government agencies.