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Lippo (HKSE:00226) Operating Margin % : -11.79% (As of Dec. 2023)


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What is Lippo Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Lippo's Operating Income for the six months ended in Dec. 2023 was HK$-50.3 Mil. Lippo's Revenue for the six months ended in Dec. 2023 was HK$426.6 Mil. Therefore, Lippo's Operating Margin % for the quarter that ended in Dec. 2023 was -11.79%.

Warning Sign:

Lippo Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -59.1%.

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

HKSE:00226' s Operating Margin % Range Over the Past 10 Years
Min: -26.55   Med: -5.06   Max: 23.77
Current: -13.64


HKSE:00226's Operating Margin % is ranked worse than
90.54% of 349 companies
in the Restaurants industry
Industry Median: 4.95 vs HKSE:00226: -13.64

Lippo's 5-Year Average Operating Margin % Growth Rate was -59.10% per year.

Lippo's Operating Income for the six months ended in Dec. 2023 was HK$-50.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$-111.0 Mil.


Lippo Operating Margin % Historical Data

The historical data trend for Lippo'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.

Lippo Operating Margin % Chart

Lippo Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.34 -25.09 -26.55 -26.34 -13.64

Lippo Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 -33.18 -31.68 -21.70 -15.68 -11.79

Competitive Comparison of Lippo's Operating Margin %

For the Restaurants subindustry, Lippo'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.


Lippo's Operating Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Lippo's Operating Margin % distribution charts can be found below:

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



Lippo 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.

Lippo'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 )
=-110.97 / 813.522
=-13.64 %

Lippo's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-50.31 / 426.62
=-11.79 %

* 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.


Lippo  (HKSE:00226) 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.


Lippo Operating Margin % Related Terms

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


Lippo (HKSE:00226) Business Description

Traded in Other Exchanges
Address
Lippo Centre, 89 Queensway, 40th Floor, Tower Two, Hong Kong, HKG
Lippo Ltd is an investment holding company. The company's operating segment includes Property investment, Property development, Treasury investment, Securities investment, Food businesses, Healthcare services, and Others. It generates maximum revenue from the Food businesses segment. The food business segment mainly includes the distribution of consumer food and non-food products, food manufacturing and retailing, the management Of restaurants, and food court operations. Geographically, it derives a majority of its revenue from the Republic of Singapore and also has a presence in Hong Kong, Macau, Mainland China, Malaysia, and Other Countries.
Executives
Hambali Aileen 2202 Interest of your spouse
Lippo Capital Group Limited 2201 Interest of corporation controlled by you
Lippo Capital Holdings Company Limited 2201 Interest of corporation controlled by you
Lippo Capital Limited 2101 Beneficial owner
Pt Trijaya Utama Mandiri 2201 Interest of corporation controlled by you
Riady James Tjahaja 2201 Interest of corporation controlled by you
Leonardi Shincee 2202 Interest of your spouse
Riady Stephen 2201 Interest of corporation controlled by you

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