Operating Margin % is calculated as Operating Income divided by its Revenue. Lonrho's Operating Income for the
six
months ended in Dec. 2012 was £-7.6 Mil. Lonrho's Revenue for the
six
months ended in Dec. 2012 was £83.6 Mil. Therefore, Lonrho's Operating Margin % for the quarter that ended in Dec. 2012 was -9.09%.
Good Sign:
Lonrho PLC operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Lonrho's Operating Margin % or its related term are showing as below:
LSE:LONR'
s Operating Margin % Range Over the Past 10 Years
Min: -115.69 Med: -14.17 Max: -2.32
Current: -7.89
LSE:LONR's Operating Margin % is not ranked
in the Conglomerates industry.
Industry Median: 5.57
vs LSE:LONR: -7.89
Lonrho's 5-Year Average Operating Margin % Growth Rate was 53.50% per year.
Lonrho's Operating Income for the
six
months ended in Dec. 2012 was £-7.6 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2012 was £-7.6 Mil.
Warning Sign:
Lonrho PLC had operating loss over the past 3 years.
Lonrho Operating Margin % Historical Data
The historical data trend for Lonrho'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.
Competitive Comparison of Lonrho's Operating Margin %
For the Conglomerates subindustry, Lonrho'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.
Lonrho's Operating Margin % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Lonrho's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lonrho's Operating Margin % falls into.
Lonrho 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.
Lonrho's Operating Margin % for the fiscal year that ended in Dec. 2012 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.
Lonrho (LSE:LONR) 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 Nokias 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.
Lonrho Operating Margin % Related Terms
Thank you for viewing the detailed overview of Lonrho's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lonrho PLC is engaged in providing the infrastructure and services required for the growing oil, mineral and agricultural sectors in Africa. The Company has a diverse portfolio of investments across Sub-Saharan Africa in four core operating sectors: Agribusiness, Infrastructure, Hotels and Support Services. Agribusiness vertically integrates the production, sourcing, logistics, processing and distribution of agricultural products from Sub-Saharan Africa to the consumer. The division supplies to its retailers in Sub-Saharan Africa, Europe, the USA, Middle East, Scandinavia and the Far East. The division also distributes agricultural and heavy machinery. Infrastructure division develops and manages oil logistics terminals. Luba Freeport, the oil service terminal in the Gulf of Guinea, has attracted oil service companies to be long term tenants at the port to service offshore exploration and production rigs. The Company's Hotel division includes hotels centred on the commercial, conference and business related markets across the Continent. It owns or manages hotels in Lubumbashi and Kinshasa in the Democratic Republic of the Congo, Maputo in Mozambique, Gaborone in Botswana and Mutare in Zimbabwe. IT business is a full systems integrator and manager that designs, builds, develops and integrates IT solutions for large corporate clients, banks and governments and then undertakes management contracts to run and manage installations. The IT division is a distributor for Cisco, Microsoft, Dell and Hewlett Packard systems and equipment.
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