Rowe (ROWC) Operating Margin %: -10.37% (As of May. 2006)

Rowe  (OTCPK:ROWC) 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.

Rowe Operating Margin % Related Terms

The historical data trend for Rowe'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.

Rowe Operating Margin % Chart

Rowe Annual Data
	Trend	Nov96	Nov97	Nov98	Nov99	Nov00	Nov01	Nov02	Nov03	Nov04	Nov05
Operating Margin %		Get a 7-Day Free Trial					-4.32	0.71	2.02	1.15	-5.07

Rowe Quarterly Data
	Aug01	Nov01	Feb02	May02	Aug02	Nov02	Feb03	May03	Aug03	Nov03	Feb04	May04	Aug04	Nov04	Feb05	May05	Aug05	Nov05	Feb06	May06
Operating Margin %	Get a 7-Day Free Trial															-4.28	-2.48	-6.64	-6.54	-10.37

ROWC vs ADAD, PFWI, MJPI: Operating Margin % Comparison

For the Furnishings, Fixtures & Appliances subindustry, Rowe'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.

Rowe Operating Margin % vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Rowe's Operating Margin % distribution charts can be found below:

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

Rowe 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.

Rowe's Operating Margin % for the fiscal year that ended in Nov. 2005 is calculated as

Rowe's Operating Margin % for the quarter that ended in May. 2006 is calculated as

* 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.

Rowe Business Description