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ITM Power (LSE:ITM) Operating Margin % : -169.11% (As of Apr. 2024)


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What is ITM Power Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. ITM Power's Operating Income for the six months ended in Apr. 2024 was £-12.90 Mil. ITM Power's Revenue for the six months ended in Apr. 2024 was £7.63 Mil. Therefore, ITM Power's Operating Margin % for the quarter that ended in Apr. 2024 was -169.11%.

Warning Sign:

ITM Power PLC operating margin has been in a 5-year decline. The average rate of decline per year is -8.7%.

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

LSE:ITM' s Operating Margin % Range Over the Past 10 Years
Min: -1896.73   Med: -287.94   Max: -147
Current: -220.9


LSE:ITM's Operating Margin % is ranked worse than
97.78% of 2967 companies
in the Industrial Products industry
Industry Median: 6.73 vs LSE:ITM: -220.90

ITM Power's 5-Year Average Operating Margin % Growth Rate was -8.70% per year.

ITM Power's Operating Income for the six months ended in Apr. 2024 was £-12.90 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2024 was £-36.47 Mil.


ITM Power Operating Margin % Historical Data

The historical data trend for ITM Power'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.

ITM Power Operating Margin % Chart

ITM Power Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -893.19 -624.14 -795.02 -1,896.73 -220.90

ITM Power Semi-Annual Data
Oct14 Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24
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 -2,018.83 -2,765.19 -1,345.18 -265.36 -169.11

Competitive Comparison of ITM Power's Operating Margin %

For the Specialty Industrial Machinery subindustry, ITM Power'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.


ITM Power's Operating Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, ITM Power's Operating Margin % distribution charts can be found below:

* The bar in red indicates where ITM Power's Operating Margin % falls into.



ITM Power 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.

ITM Power's Operating Margin % for the fiscal year that ended in Apr. 2024 is calculated as

Operating Margin %=Operating Income (A: Apr. 2024 ) / Revenue (A: Apr. 2024 )
=-36.468 / 16.509
=-220.90 %

ITM Power's Operating Margin % for the quarter that ended in Apr. 2024 is calculated as

Operating Margin %=Operating Income (Q: Apr. 2024 ) / Revenue (Q: Apr. 2024 )
=-12.896 / 7.626
=-169.11 %

* 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.


ITM Power  (LSE:ITM) 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.


ITM Power Operating Margin % Related Terms

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


ITM Power Business Description

Traded in Other Exchanges
Address
2 Bessemer Park, Shepcote Lane, Sheffield, GBR, S9 1DZ
ITM Power PLC designs and manufactures integrated hydrogen energy systems for energy storage and clean fuel production. The company is also involved in the research and development of scientific and engineering projects; the development and manufacture of prototype products; and the sale of electrolyzer products such as HGas, HFuel, HPac. It offers a range of services including construction, consulting, and other services. Its primary geographic markets are the United Kingdom, the Rest of Europe, Germany, and with maximum revenue from the United Kingdom.