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MercadoLibre (MEX:MELI) Operating Margin % : 10.49% (As of Sep. 2024)


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What is MercadoLibre Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. MercadoLibre's Operating Income for the three months ended in Sep. 2024 was MXN10,967 Mil. MercadoLibre's Revenue for the three months ended in Sep. 2024 was MXN104,595 Mil. Therefore, MercadoLibre's Operating Margin % for the quarter that ended in Sep. 2024 was 10.49%.

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

MEX:MELI' s Operating Margin % Range Over the Past 10 Years
Min: -6.67   Med: 10.86   Max: 30.54
Current: 9.53


MEX:MELI's Operating Margin % is ranked better than
77.72% of 1104 companies
in the Retail - Cyclical industry
Industry Median: 3.6 vs MEX:MELI: 9.53

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

MercadoLibre's Operating Income for the three months ended in Sep. 2024 was MXN10,967 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was MXN32,199 Mil.

Warning Sign:

MercadoLibre Inc has recorded a loss in operating income at least once over the past 3 years.


MercadoLibre Operating Margin % Historical Data

The historical data trend for MercadoLibre'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.

MercadoLibre Operating Margin % Chart

MercadoLibre 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 -6.67 3.22 6.24 9.81 12.60

MercadoLibre Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 19.99 -1.30 12.19 14.31 10.49

Competitive Comparison of MercadoLibre's Operating Margin %

For the Internet Retail subindustry, MercadoLibre'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.


MercadoLibre's Operating Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, MercadoLibre's Operating Margin % distribution charts can be found below:

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



MercadoLibre 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.

MercadoLibre's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=30944.054 / 245668.291
=12.60 %

MercadoLibre's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=10967.497 / 104594.874
=10.49 %

* 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.


MercadoLibre  (MEX:MELI) 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.


MercadoLibre Operating Margin % Related Terms

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


MercadoLibre Business Description

Address
WTC Free Zone, Dr. Luis Bonavita 1294, Of. 1733, Tower II, Montevideo, URY, 11300
MercadoLibre runs the largest e-commerce marketplace in Latin America, with more than 218 million active users and 1 million active sellers across 18 countries stitching into its commerce network or fintech solutions as of the end of 2023. The company operates a host of complementary businesses to its core online shop, with shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago and Mercado Credito), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops) rounding out its arsenal. MercadoLibre generates revenue from final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.