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China e-Wallet Payment Group (LSE:RCG) Operating Margin % : -43.49% (As of Jun. 2023)


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What is China e-Wallet Payment Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. China e-Wallet Payment Group's Operating Income for the six months ended in Jun. 2023 was £-1.90 Mil. China e-Wallet Payment Group's Revenue for the six months ended in Jun. 2023 was £4.38 Mil. Therefore, China e-Wallet Payment Group's Operating Margin % for the quarter that ended in Jun. 2023 was -43.49%.

Good Sign:

China e-Wallet Payment Group Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for China e-Wallet Payment Group's Operating Margin % or its related term are showing as below:

LSE:RCG' s Operating Margin % Range Over the Past 10 Years
Min: -599.43   Med: -85.67   Max: -37.03
Current: -37.03


LSE:RCG's Operating Margin % is not ranked
in the Software industry.
Industry Median: 3.135 vs LSE:RCG: -37.03

China e-Wallet Payment Group's 5-Year Average Operating Margin % Growth Rate was 25.20% per year.

China e-Wallet Payment Group's Operating Income for the six months ended in Jun. 2023 was £-1.90 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was £-2.66 Mil.

Warning Sign:

China e-Wallet Payment Group Ltd has never been profitable in the past 3 years. It lost money every year.


China e-Wallet Payment Group Operating Margin % Historical Data

The historical data trend for China e-Wallet Payment 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.

China e-Wallet Payment Group Operating Margin % Chart

China e-Wallet Payment Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -82.58 -99.03 -44.57 -69.97 -37.03

China e-Wallet Payment Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 -55.71 -47.89 -92.60 -43.49 -26.93

Competitive Comparison of China e-Wallet Payment Group's Operating Margin %

For the Software - Application subindustry, China e-Wallet Payment 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.


China e-Wallet Payment Group's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, China e-Wallet Payment Group's Operating Margin % distribution charts can be found below:

* The bar in red indicates where China e-Wallet Payment Group's Operating Margin % falls into.



China e-Wallet Payment 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.

China e-Wallet Payment Group's Operating Margin % for the fiscal year that ended in Dec. 2022 is calculated as

Operating Margin %=Operating Income (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=-6.574 / 9.395
=-69.97 %

China e-Wallet Payment Group's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=-1.903 / 4.376
=-43.49 %

* 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.


China e-Wallet Payment Group  (LSE:RCG) 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.


China e-Wallet Payment Group Operating Margin % Related Terms

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China e-Wallet Payment Group (LSE:RCG) Business Description

Traded in Other Exchanges
Address
11 On Lai Street, Room 626-629, Corporation Park, Siu Lek Yuen, Sha Tin, New Territories, Hong Kong, HKG
China e-Wallet Payment Group Ltd is engaged in the business of Internet and Mobile Applications and Related Accessories. The Group is specialized in providing programming and advertising solutions on mobile platforms and is also engaged in the business of distribution of computer-related and mobile-related electronic products and accessories. Geographically it operates in Hong Kong and the PRC. The company derives a majority of its revenue from the People's Republic of China.

China e-Wallet Payment Group (LSE:RCG) Headlines

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