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Honeywell Flour Mills (NSA:HFM) Operating Margin % : 0.62% (As of Mar. 2023)


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What is Honeywell Flour Mills Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Honeywell Flour Mills's Operating Income for the six months ended in Mar. 2023 was ₦917 Mil. Honeywell Flour Mills's Revenue for the six months ended in Mar. 2023 was ₦147,351 Mil. Therefore, Honeywell Flour Mills's Operating Margin % for the quarter that ended in Mar. 2023 was 0.62%.

Warning Sign:

Honeywell Flour Mills PLC operating margin has been in a 5-year decline. The average rate of decline per year is -36.8%.

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

NSA:HFM' s Operating Margin % Range Over the Past 10 Years
Min: -4.13   Med: 5.64   Max: 13.43
Current: 0.62


NSA:HFM's Operating Margin % is ranked worse than
72.98% of 1858 companies
in the Consumer Packaged Goods industry
Industry Median: 4.93 vs NSA:HFM: 0.62

Honeywell Flour Mills's 5-Year Average Operating Margin % Growth Rate was -36.80% per year.

Honeywell Flour Mills's Operating Income for the six months ended in Mar. 2023 was ₦917 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2023 was ₦917 Mil.


Honeywell Flour Mills Operating Margin % Historical Data

The historical data trend for Honeywell Flour Mills'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.

Honeywell Flour Mills Operating Margin % Chart

Honeywell Flour Mills Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.42 6.83 6.94 3.43 0.62

Honeywell Flour Mills Semi-Annual Data
Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
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 4.42 6.83 6.94 3.43 0.62

Competitive Comparison of Honeywell Flour Mills's Operating Margin %

For the Packaged Foods subindustry, Honeywell Flour Mills'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.


Honeywell Flour Mills's Operating Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Honeywell Flour Mills's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Honeywell Flour Mills's Operating Margin % falls into.



Honeywell Flour Mills 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.

Honeywell Flour Mills's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=916.721 / 147350.739
=0.62 %

Honeywell Flour Mills's Operating Margin % for the quarter that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2023 ) / Revenue (Q: Mar. 2023 )
=916.721 / 147350.739
=0.62 %

* 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.


Honeywell Flour Mills  (NSA:HFM) 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.


Honeywell Flour Mills Operating Margin % Related Terms

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Honeywell Flour Mills (NSA:HFM) Business Description

Traded in Other Exchanges
N/A
Address
2nd Gate Bye-Pass, Tin Can Island, Apapa, Lagos, NGA
Honeywell Flour Mills PLC is a Nigeria-based company. It is engaged in the manufacturing of wheat-based products such as flour, semolina, whole wheat meal, noodles, and pasta. The company operates its business through geographical segments that are Ikeja, which manufacture noodles; Sagamu segment manufactures Pasta and Apapa, which manufactures flour, semolina, wheat meal, brown flour and Baker's delight flour. The Apapa generates maximum revenue for the company. The company offers its services throughout Nigeria region.

Honeywell Flour Mills (NSA:HFM) Headlines

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