Dragon Oil (LSE:DGO) Operating Margin % : 39.82% (As of Jun. 2015)

Dragon Oil Operating Margin % Chart

Dragon Oil Annual Data
	Trend	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14
Operating Margin %		Get a 7-Day Free Trial					62.50	74.42	68.47	65.63	52.94

Dragon Oil Semi-Annual Data
	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15
Operating Margin %	Get a 7-Day Free Trial								65.93	65.37	71.02	34.82	39.82

Competitive Comparison of Dragon Oil's Operating Margin %

For the Oil & Gas E&P subindustry, Dragon Oil'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.

Dragon Oil's Operating Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Dragon Oil's Operating Margin % distribution charts can be found below:

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

Dragon Oil 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.

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

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

* 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.

Dragon Oil  (LSE:DGO) 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.

Dragon Oil Operating Margin % Related Terms

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Dragon Oil (LSE:DGO) Business Description