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Rautaruukki Oyj (OHEL:RTRKS) Operating Margin % : -0.52% (As of Sep. 2014)


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What is Rautaruukki Oyj Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Rautaruukki Oyj's Operating Income for the three months ended in Sep. 2014 was €-3 Mil. Rautaruukki Oyj's Revenue for the three months ended in Sep. 2014 was €581 Mil. Therefore, Rautaruukki Oyj's Operating Margin % for the quarter that ended in Sep. 2014 was -0.52%.

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

OHEL:RTRKS' s Operating Margin % Range Over the Past 10 Years
Min: -16.56   Med: 4.48   Max: 16.91
Current: 0.17


OHEL:RTRKS's Operating Margin % is not ranked
in the Steel industry.
Industry Median: 4.36 vs OHEL:RTRKS: 0.17

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

Rautaruukki Oyj's Operating Income for the three months ended in Sep. 2014 was €-3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was €4 Mil.


Rautaruukki Oyj Operating Margin % Historical Data

The historical data trend for Rautaruukki Oyj'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.

Rautaruukki Oyj Operating Margin % Chart

Rautaruukki Oyj Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -16.56 -0.50 0.79 -3.61 1.41

Rautaruukki Oyj Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 1.69 0.68 -0.69 1.13 -0.52

Competitive Comparison of Rautaruukki Oyj's Operating Margin %

For the Steel subindustry, Rautaruukki Oyj'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.


Rautaruukki Oyj's Operating Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Rautaruukki Oyj's Operating Margin % distribution charts can be found below:

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



Rautaruukki Oyj 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.

Rautaruukki Oyj's Operating Margin % for the fiscal year that ended in Dec. 2013 is calculated as

Operating Margin %=Operating Income (A: Dec. 2013 ) / Revenue (A: Dec. 2013 )
=34 / 2405
=1.41 %

Rautaruukki Oyj's Operating Margin % for the quarter that ended in Sep. 2014 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=-3 / 581
=-0.52 %

* 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.


Rautaruukki Oyj  (OHEL:RTRKS) 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.


Rautaruukki Oyj Operating Margin % Related Terms

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Rautaruukki Oyj (OHEL:RTRKS) Business Description

Traded in Other Exchanges
N/A
Address
Rautaruukki Oyj supplies metal-based components, systems and integrated systems to construction and the engineering industry. The company's operations are structured into three divisions: construction, engineering, and steel business. Its construction division supplies steel construction solutions for commercial and industrial construction, as well as for infrastructure foundation and transport infrastructure projects. The divisions' product portfolio includes building frames, wall and roofing products, integrated systems for single and multi-story construction, bridges, traffic noise barriers and highway guard rails, piles, retaining wall structures and foundations for harbor construction. Its customers include developers, designs and builders of commercial, industrial and office premises, logistics and sports complexes and infrastructure services as well as roofing suppliers. Its engineering division supplies systems and components to the engineering industry, such as cabins, booms, masts and frames for goods and container handling, the construction industry and mining and forestry, telescopic booms, frames and parts; windmill components and oil sumps. Main markets serve international European companies, specifically the lifting, handling, and transportation equipment industry, the energy industry, the marine and offshore industry and the paper and wood industry. The Metals division supplies steel products associated with prefabrication, logistics and storage services. The division's product portfolio consists of hot and cold-rolled steels, metal and color-coated steels, tubes and profiles and stainless steel and aluminum sold as trading products. Its customers include the transportation equipment, construction, engineering and electronics industries in Europe and Russia.

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