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FRMA (Firma Holdings) Operating Margin % : -415.64% (As of Jun. 2015)


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What is Firma Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Firma Holdings's Operating Income for the three months ended in Jun. 2015 was $-1.01 Mil. Firma Holdings's Revenue for the three months ended in Jun. 2015 was $0.24 Mil. Therefore, Firma Holdings's Operating Margin % for the quarter that ended in Jun. 2015 was -415.64%.

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


FRMA's Operating Margin % is not ranked *
in the Metals & Mining industry.
Industry Median: 2.41
* Ranked among companies with meaningful Operating Margin % only.

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

Firma Holdings's Operating Income for the three months ended in Jun. 2015 was $-1.01 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2015 was $-3.52 Mil.


Firma Holdings Operating Margin % Historical Data

The historical data trend for Firma Holdings'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.

Firma Holdings Operating Margin % Chart

Firma Holdings Annual Data
Trend Oct06 Oct07 Oct08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Operating Margin %
Get a 7-Day Free Trial Premium Member Only -11,308.13 - - - -3,180.95

Firma Holdings Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
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 - - - - -415.64

Competitive Comparison of Firma Holdings's Operating Margin %

For the Other Industrial Metals & Mining subindustry, Firma Holdings'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.


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

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

* The bar in red indicates where Firma Holdings's Operating Margin % falls into.



Firma Holdings 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.

Firma Holdings's Operating Margin % for the fiscal year that ended in Dec. 2014 is calculated as

Operating Margin %=Operating Income (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=-3.34 / 0.105
=-3,180.95 %

Firma Holdings's Operating Margin % for the quarter that ended in Jun. 2015 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=-1.01 / 0.243
=-415.64 %

* 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.


Firma Holdings  (OTCPK:FRMA) 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.


Firma Holdings Operating Margin % Related Terms

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Firma Holdings Business Description

Traded in Other Exchanges
N/A
Address
4915 Main Street, 2nd Floor, Suite 3, Downers Grove, IL, USA, 60515
Firma Holdings Corp operates in the mining and consumer product sales business. In addition, it also sells personal protection equipment (commonly referred to as "PPE"), and household and consumer products with its existing joint venture partners as well as participates as a procurement agent for both commercial and government entities.