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Made Tech Group (LSE:MTEC) Operating Margin % : 0.50% (As of Nov. 2023)


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What is Made Tech Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Made Tech Group's Operating Income for the six months ended in Nov. 2023 was £0.10 Mil. Made Tech Group's Revenue for the six months ended in Nov. 2023 was £19.13 Mil. Therefore, Made Tech Group's Operating Margin % for the quarter that ended in Nov. 2023 was 0.50%.

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

LSE:MTEC' s Operating Margin % Range Over the Past 10 Years
Min: -5.82   Med: -0.12   Max: 12.05
Current: 0.83


LSE:MTEC's Operating Margin % is ranked worse than
56.25% of 2759 companies
in the Software industry
Industry Median: 3.29 vs LSE:MTEC: 0.83

Made Tech Group's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Made Tech Group's Operating Income for the six months ended in Nov. 2023 was £0.10 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Nov. 2023 was £0.32 Mil.


Made Tech Group Operating Margin % Historical Data

The historical data trend for Made Tech Group'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.

Made Tech Group Operating Margin % Chart

Made Tech Group Annual Data
Trend May19 May20 May21 May22 May23
Operating Margin %
12.05 7.08 -5.82 -0.12 -2.55

Made Tech Group Semi-Annual Data
May19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23
Operating Margin % Get a 7-Day Free Trial Premium Member Only 2.96 -2.17 -6.08 1.15 0.50

Competitive Comparison of Made Tech Group's Operating Margin %

For the Information Technology Services subindustry, Made Tech Group'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.


Made Tech Group's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Made Tech Group's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Made Tech Group's Operating Margin % falls into.



Made Tech Group 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.

Made Tech Group's Operating Margin % for the fiscal year that ended in May. 2023 is calculated as

Operating Margin %=Operating Income (A: May. 2023 ) / Revenue (A: May. 2023 )
=-1.023 / 40.195
=-2.55 %

Made Tech Group's Operating Margin % for the quarter that ended in Nov. 2023 is calculated as

Operating Margin %=Operating Income (Q: Nov. 2023 ) / Revenue (Q: Nov. 2023 )
=0.096 / 19.134
=0.50 %

* 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.


Made Tech Group  (LSE:MTEC) 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.


Made Tech Group Operating Margin % Related Terms

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Made Tech Group (LSE:MTEC) Business Description

Traded in Other Exchanges
Address
4 O’Meara Street, London, GBR, SE1 1TE
Made Tech Group PLC provides digital, data and technology services to the UK public sector, that enables central government, healthcare, and local government organisations to digitally transform. Its projects include delivering and operating the Multichannel Digital Tax Platform (MDTP), which runs HMRC's Making Tax Digital services; supporting the Ministry of Justice to modernise the technology within the prison estate; and working with DVLA to digitally transform key services such as the UK provisional driving licence system.

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