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Livestock Improvement (NZSE:LIC) Operating Margin % : 25.03% (As of Nov. 2024)


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What is Livestock Improvement Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Livestock Improvement's Operating Income for the six months ended in Nov. 2024 was NZ$46.5 Mil. Livestock Improvement's Revenue for the six months ended in Nov. 2024 was NZ$185.7 Mil. Therefore, Livestock Improvement's Operating Margin % for the quarter that ended in Nov. 2024 was 25.03%.

Warning Sign:

Livestock Improvement Corp Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4%.

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

NZSE:LIC' s Operating Margin % Range Over the Past 10 Years
Min: -4.21   Med: 11.14   Max: 15.06
Current: 10.03


NZSE:LIC's Operating Margin % is ranked better than
70.37% of 1880 companies
in the Consumer Packaged Goods industry
Industry Median: 5.505 vs NZSE:LIC: 10.03

Livestock Improvement's 5-Year Average Operating Margin % Growth Rate was -4.00% per year.

Livestock Improvement's Operating Income for the six months ended in Nov. 2024 was NZ$46.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Nov. 2024 was NZ$28.2 Mil.


Livestock Improvement Operating Margin % Historical Data

The historical data trend for Livestock Improvement'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.

Livestock Improvement Operating Margin % Chart

Livestock Improvement Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.77 12.81 12.68 11.21 8.13

Livestock Improvement Semi-Annual Data
May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24
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 26.32 -15.75 23.27 -19.18 25.03

Competitive Comparison of Livestock Improvement's Operating Margin %

For the Farm Products subindustry, Livestock Improvement'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.


Livestock Improvement's Operating Margin % Distribution in the Consumer Packaged Goods Industry

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

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



Livestock Improvement 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.

Livestock Improvement's Operating Margin % for the fiscal year that ended in May. 2024 is calculated as

Operating Margin %=Operating Income (A: May. 2024 ) / Revenue (A: May. 2024 )
=21.736 / 267.288
=8.13 %

Livestock Improvement's Operating Margin % for the quarter that ended in Nov. 2024 is calculated as

Operating Margin %=Operating Income (Q: Nov. 2024 ) / Revenue (Q: Nov. 2024 )
=46.472 / 185.666
=25.03 %

* 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.


Livestock Improvement  (NZSE:LIC) 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.


Livestock Improvement Operating Margin % Related Terms

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Livestock Improvement Business Description

Traded in Other Exchanges
N/A
Address
605 Ruakura Road, Newstead, Hamilton, NTL, NZL, 3286
Livestock Improvement Corp Ltd is an agri-tech and herd improvement company. The company's operating segments include NZ market genetics; Herd testing; Farm software and Diagnostics. It generates maximum revenue from the NZ market genetics segment. The NZ market genetics segment provides bovine genetic breeding material and related services, predominately to dairy farmers. Geographically, it derives a majority of revenue from New Zealand.

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