GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » The Hongkong and Shanghai Hotels Ltd (OTCPK:HKSHF) » Definitions » Operating Margin %

HKSHF (The Hongkong and Shanghai Hotels) Operating Margin % : 4.53% (As of Jun. 2024)


View and export this data going back to 2009. Start your Free Trial

What is The Hongkong and Shanghai Hotels Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. The Hongkong and Shanghai Hotels's Operating Income for the six months ended in Jun. 2024 was $27 Mil. The Hongkong and Shanghai Hotels's Revenue for the six months ended in Jun. 2024 was $591 Mil. Therefore, The Hongkong and Shanghai Hotels's Operating Margin % for the quarter that ended in Jun. 2024 was 4.53%.

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

HKSHF' s Operating Margin % Range Over the Past 10 Years
Min: -22.66   Med: 14.14   Max: 18.93
Current: 6.4


HKSHF's Operating Margin % is ranked worse than
55.56% of 819 companies
in the Travel & Leisure industry
Industry Median: 8.21 vs HKSHF: 6.40

The Hongkong and Shanghai Hotels's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

The Hongkong and Shanghai Hotels's Operating Income for the six months ended in Jun. 2024 was $27 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was $84 Mil.

Warning Sign:

The Hongkong and Shanghai Hotels Ltd had lost money in 67% of the time over the past 3quarters.


The Hongkong and Shanghai Hotels Operating Margin % Historical Data

The historical data trend for The Hongkong and Shanghai Hotels'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.

The Hongkong and Shanghai Hotels Operating Margin % Chart

The Hongkong and Shanghai Hotels 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 13.64 -22.66 -3.03 -1.26 7.13

The Hongkong and Shanghai Hotels 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 -9.93 4.42 5.28 7.92 4.53

Competitive Comparison of The Hongkong and Shanghai Hotels's Operating Margin %

For the Lodging subindustry, The Hongkong and Shanghai Hotels'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.


The Hongkong and Shanghai Hotels's Operating Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, The Hongkong and Shanghai Hotels's Operating Margin % distribution charts can be found below:

* The bar in red indicates where The Hongkong and Shanghai Hotels's Operating Margin % falls into.



The Hongkong and Shanghai Hotels 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.

The Hongkong and Shanghai Hotels'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 )
=74.01 / 1038.695
=7.13 %

The Hongkong and Shanghai Hotels'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 )
=26.761 / 590.909
=4.53 %

* 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.


The Hongkong and Shanghai Hotels  (OTCPK:HKSHF) 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.


The Hongkong and Shanghai Hotels Operating Margin % Related Terms

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


The Hongkong and Shanghai Hotels Business Description

Traded in Other Exchanges
Address
2 Ice House Street, 8th Floor, St. George’s Building, Central, Hong Kong, HKG
The Hongkong and Shanghai Hotels Ltd is a hotel owner and operator, domiciled in Hong Kong. The company organizes itself into three segments: hotels, commercial properties, and clubs and services. The hotel's segment, which contributes the vast majority of consolidated revenue, includes the company's hotel operations under The Peninsula brand in major cities across the globe, the most significant of which is The Peninsula Hong Kong. The commercial properties segment leases office buildings, residential apartments and retail spaces. Clubs and services operate golf courses, wholesale food, and provides laundry services.