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Egdon Resources (LSE:EDR) Operating Margin % : 34.58% (As of Jan. 2023)


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What is Egdon Resources Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Egdon Resources's Operating Income for the six months ended in Jan. 2023 was £1.29 Mil. Egdon Resources's Revenue for the six months ended in Jan. 2023 was £3.73 Mil. Therefore, Egdon Resources's Operating Margin % for the quarter that ended in Jan. 2023 was 34.58%.

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


LSE:EDR's Operating Margin % is not ranked *
in the Oil & Gas industry.
Industry Median: 7.68
* Ranked among companies with meaningful Operating Margin % only.

Egdon Resources's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Egdon Resources's Operating Income for the six months ended in Jan. 2023 was £1.29 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2023 was £2.54 Mil.


Egdon Resources Operating Margin % Historical Data

The historical data trend for Egdon Resources'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.

Egdon Resources Operating Margin % Chart

Egdon Resources Annual Data
Trend Jul12 Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -159.48 -159.51 -75.92 -479.98 -126.99

Egdon Resources Semi-Annual Data
Jul13 Jan14 Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23
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 -222.41 -66.52 52.57 28.80 34.58

Competitive Comparison of Egdon Resources's Operating Margin %

For the Oil & Gas E&P subindustry, Egdon Resources'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.


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

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

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


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Egdon Resources 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.

Egdon Resources's Operating Margin % for the fiscal year that ended in Jul. 2021 is calculated as

Operating Margin %=Operating Income (A: Jul. 2021 ) / Revenue (A: Jul. 2021 )
=-1.388 / 1.093
=-126.99 %

Egdon Resources's Operating Margin % for the quarter that ended in Jan. 2023 is calculated as

Operating Margin %=Operating Income (Q: Jan. 2023 ) / Revenue (Q: Jan. 2023 )
=1.288 / 3.725
=34.58 %

* 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.


Egdon Resources  (LSE:EDR) 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.


Egdon Resources Operating Margin % Related Terms

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Egdon Resources Business Description

Traded in Other Exchanges
N/A
Address
450 Green Park, Suite 250, Reading, GBR, RG2 6UU
Egdon Resources PLC is an Oil and Gas company. The principal activity of the group is engaged in the exploration and production of conventional oil and gas in the UK and France and the exploration for unconventional oil and gas resources in the UK. Its primary focus is on conventional oil and gas reservoirs where the oil and gas are found in porous rocks. Unconventional oil and gas reservoirs occur where the oil and gas became trapped within the organic-rich shale rock itself. Its project sites include Wressle Oil and Gas Discovery, North Kelsey, and Biscathorpe. The group generates revenue from the sale of oil.