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Orient Overseas (International) (HKSE:00316) Operating Margin % : 18.78% (As of Jun. 2024)


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What is Orient Overseas (International) Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Orient Overseas (International)'s Operating Income for the six months ended in Jun. 2024 was HK$6,814 Mil. Orient Overseas (International)'s Revenue for the six months ended in Jun. 2024 was HK$36,282 Mil. Therefore, Orient Overseas (International)'s Operating Margin % for the quarter that ended in Jun. 2024 was 18.78%.

Good Sign:

Orient Overseas (International) Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Orient Overseas (International)'s Operating Margin % or its related term are showing as below:

HKSE:00316' s Operating Margin % Range Over the Past 10 Years
Min: -3.84   Med: 3.9   Max: 49.27
Current: 7.41


HKSE:00316's Operating Margin % is ranked worse than
50.62% of 964 companies
in the Transportation industry
Industry Median: 7.655 vs HKSE:00316: 7.41

Orient Overseas (International)'s 5-Year Average Operating Margin % Growth Rate was 59.80% per year.

Orient Overseas (International)'s Operating Income for the six months ended in Jun. 2024 was HK$6,814 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was HK$4,889 Mil.


Orient Overseas (International) Operating Margin % Historical Data

The historical data trend for Orient Overseas (International)'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.

Orient Overseas (International) Operating Margin % Chart

Orient Overseas (International) 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 3.61 11.71 43.65 49.27 10.51

Orient Overseas (International) Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 51.63 46.28 24.75 -6.48 18.78

Competitive Comparison of Orient Overseas (International)'s Operating Margin %

For the Marine Shipping subindustry, Orient Overseas (International)'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.


Orient Overseas (International)'s Operating Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Orient Overseas (International)'s Operating Margin % distribution charts can be found below:

* The bar in red indicates where Orient Overseas (International)'s Operating Margin % falls into.



Orient Overseas (International) 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.

Orient Overseas (International)'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 )
=6851.491 / 65163.854
=10.51 %

Orient Overseas (International)'s Operating Margin % for the quarter that ended in Jun. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=6814.209 / 36281.949
=18.78 %

* 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.


Orient Overseas (International)  (HKSE:00316) 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.


Orient Overseas (International) Operating Margin % Related Terms

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Orient Overseas (International) Business Description

Traded in Other Exchanges
Address
25 Harbour Road, 31st Floor, Harbour Centre, Wanchai, Hong Kong, HKG
Orient Overseas (International) Ltd is engaged in container transport and logistics. Container transport and logistics include containerized shipping services in trade lanes, covering Trans-Pacific, Trans-Atlantic, Asia/Europe, Asia/Australia, and Intra-Asia trades, and integrated services over the management and control of effective storage and flow of goods. Revenue comprises gross freight income, charter hire, service, and other income from the operation of the container transport and logistics and rental income from the investment property. Its segments are Container transport and logistics and Others.
Executives
Cosco Shipping Holdings Co., Ltd.
China Cosco Shipping Corporation Limited
China Ocean Shipping Company Limited
Cosco Shipping Holdings (hong Kong) Limited
Faulkner Global Holdings Limited
Shanghai Port Group (bvi) Development Co., Limited
Shanghai International Port (group) Co., Ltd. 2201 Interest of corporation controlled by you
Shanghai International Port Group (hk) Co.,ltd. 2201 Interest of corporation controlled by you

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