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Ajial Real Estate & Entertainment Co (KUW:AREEC) Operating Margin % : 53.90% (As of Mar. 2024)


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What is Ajial Real Estate & Entertainment Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Ajial Real Estate & Entertainment Co's Operating Income for the three months ended in Mar. 2024 was KWD1.02 Mil. Ajial Real Estate & Entertainment Co's Revenue for the three months ended in Mar. 2024 was KWD1.90 Mil. Therefore, Ajial Real Estate & Entertainment Co's Operating Margin % for the quarter that ended in Mar. 2024 was 53.90%.

The historical rank and industry rank for Ajial Real Estate & Entertainment Co's Operating Margin % or its related term are showing as below:

KUW:AREEC' s Operating Margin % Range Over the Past 10 Years
Min: -24.94   Med: 26.23   Max: 50.87
Current: 50.87


KUW:AREEC's Operating Margin % is ranked better than
85.08% of 1769 companies
in the Real Estate industry
Industry Median: 13.15 vs KUW:AREEC: 50.87

Ajial Real Estate & Entertainment Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Ajial Real Estate & Entertainment Co's Operating Income for the three months ended in Mar. 2024 was KWD1.02 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was KWD3.81 Mil.

Warning Sign:

Ajial Real Estate & Entertainment Co has recorded a loss in operating income at least once over the past 3 years.


Ajial Real Estate & Entertainment Co Operating Margin % Historical Data

The historical data trend for Ajial Real Estate & Entertainment Co'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.

Ajial Real Estate & Entertainment Co Operating Margin % Chart

Ajial Real Estate & Entertainment Co 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 22.62 -24.94 -11.84 24.08 48.89

Ajial Real Estate & Entertainment Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 42.97 46.13 54.25 48.04 53.90

Competitive Comparison of Ajial Real Estate & Entertainment Co's Operating Margin %

For the Real Estate Services subindustry, Ajial Real Estate & Entertainment Co'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.


Ajial Real Estate & Entertainment Co's Operating Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Ajial Real Estate & Entertainment Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Ajial Real Estate & Entertainment Co's Operating Margin % falls into.



Ajial Real Estate & Entertainment Co 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.

Ajial Real Estate & Entertainment Co'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 )
=3.179 / 6.502
=48.89 %

Ajial Real Estate & Entertainment Co's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=1.023 / 1.898
=53.90 %

* 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.


Ajial Real Estate & Entertainment Co  (KUW:AREEC) 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.


Ajial Real Estate & Entertainment Co Operating Margin % Related Terms

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Ajial Real Estate & Entertainment Co (KUW:AREEC) Business Description

Traded in Other Exchanges
N/A
Address
Al Hamra Tower, 26th Floor, Office No. 2, P.O. Box 22448, Safat, Kuwait City, KWT, 13085
Ajial Real Estate & Entertainment Co is a real estate company. Its activities include buying and selling lands, renting and selling of real estate domestically and outside Kuwait, establishing and maintaining residential complexes, the building of commercial markets and entertainment centres, touristic facilities and special accommodations, provide contracting services and trading of building materials. The company's segments include Real estate investing activities that invests and trades in real estate and construction or development of real estate for the sale; and Equities and other investing activities that invest in financial and real estate funds and manages the group's liquidity requirements.

Ajial Real Estate & Entertainment Co (KUW:AREEC) Headlines

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