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Outset Medical (Outset Medical) Operating Margin % : -122.44% (As of Dec. 2023)


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What is Outset Medical Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Outset Medical's Operating Income for the three months ended in Dec. 2023 was $-37.4 Mil. Outset Medical's Revenue for the three months ended in Dec. 2023 was $30.5 Mil. Therefore, Outset Medical's Operating Margin % for the quarter that ended in Dec. 2023 was -122.44%.

Good Sign:

Outset Medical Inc operating margin is expanding. Margin expansion is usually a good sign.

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

OM' s Operating Margin % Range Over the Past 10 Years
Min: -2320.03   Med: -187.4   Max: -127.21
Current: -130.22


OM's Operating Margin % is ranked worse than
79.73% of 814 companies
in the Medical Devices & Instruments industry
Industry Median: 1.305 vs OM: -130.22

Outset Medical's 5-Year Average Operating Margin % Growth Rate was 41.30% per year.

Outset Medical's Operating Income for the three months ended in Dec. 2023 was $-37.4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-169.8 Mil.


Outset Medical Operating Margin % Historical Data

The historical data trend for Outset Medical'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.

Outset Medical Operating Margin % Chart

Outset Medical Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial -466.29 -235.24 -127.21 -139.56 -130.22

Outset Medical Quarterly Data
Dec18 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 -124.42 -129.93 -120.64 -149.71 -122.44

Competitive Comparison of Outset Medical's Operating Margin %

For the Medical Devices subindustry, Outset Medical'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.


Outset Medical's Operating Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Outset Medical's Operating Margin % distribution charts can be found below:

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



Outset Medical 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.

Outset Medical'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 )
=-169.77 / 130.376
=-130.22 %

Outset Medical's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-37.353 / 30.507
=-122.44 %

* 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.


Outset Medical  (NAS:OM) 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.


Outset Medical Operating Margin % Related Terms

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Outset Medical (Outset Medical) Business Description

Traded in Other Exchanges
N/A
Address
3052 Orchard Drive, San Jose, CA, USA, 95134
Outset Medical Inc is a medical technology company. It has developed a machine, Tablo, which reduces the cost and complexity of dialysis. Tablo provides Renal Replacement Therapy in Hospitals, Chronic Care in Dialysis Clinics and Home Dialysis.
Executives
Leslie Trigg director, officer: President & CEO C/O OUTSET MEDICAL, 1830 BERING ROAD, SAN JOSE CA 95112
Marc Nash officer: SVP, Operations and R&D 3052 ORCHARD DRIVE, SAN JOSE CA 95134
Jean-olivier Racine officer: Chief Technology Officer 3052 ORCHARD DRIVE, SAN JOSE CA 95134
Nabeel Ahmed officer: Interim CFO 3052 ORCHARD DRIVE, SAN JOSE CA 95134
Stacey L. Porter officer: Chief People Officer 3052 ORCHARD DRIVE, SAN JOSE CA 95134
John L. Brottem officer: General Counsel 3052 ORCHARD DR., SAN JOSE CA 95134
Steven S. Williamson officer: Chief Commercial Officer C/O HOLOGIC, INC., BEDFORD MA 01730
Martin Vazquez officer: Chief Operating Officer 3052 ORCHARD DR., SAN JOSE CA 95134
James F. Hinrichs director 3750 TORREY VIEW COURT, SAN DIEGO CA 92130
Dale E Jones director C/O HUGHES SUPPLY INC, 20 N ORANGE AVE, ORLANDO FL 32801
D Keith Grossman director
Rebecca Chambers officer: Chief Financial Officer 3052 ORCHARD DR., SAN JOSE CA 95134
Catherine M. Szyman director C/O EDWARDS LIFESCIENCES CORPORATION, ONE EDWARDS WAY, IRVINE CA 92614
Warburg Pincus Llc director, 10 percent owner 450 LEXINGTON AVENUE, NEW YORK NY 10017
Warburg Pincus X, L.p. director, 10 percent owner C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017