GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Saab AB (OTCPK:SAABF) » Definitions » Operating Margin %

SAABF (Saab AB) Operating Margin % : 8.72% (As of Sep. 2024)


View and export this data going back to 2011. Start your Free Trial

What is Saab AB Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Saab AB's Operating Income for the three months ended in Sep. 2024 was $115 Mil. Saab AB's Revenue for the three months ended in Sep. 2024 was $1,324 Mil. Therefore, Saab AB's Operating Margin % for the quarter that ended in Sep. 2024 was 8.72%.

Good Sign:

Saab AB operating margin is expanding. Margin expansion is usually a good sign.

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

SAABF' s Operating Margin % Range Over the Past 10 Years
Min: 1.95   Med: 7.34   Max: 8.76
Current: 8.41


SAABF's Operating Margin % is ranked better than
57.14% of 308 companies
in the Aerospace & Defense industry
Industry Median: 6.935 vs SAABF: 8.41

Saab AB's 5-Year Average Operating Margin % Growth Rate was 6.20% per year.

Saab AB's Operating Income for the three months ended in Sep. 2024 was $115 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $480 Mil.


Saab AB Operating Margin % Historical Data

The historical data trend for Saab AB'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.

Saab AB Operating Margin % Chart

Saab AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.11 1.95 7.52 7.81 8.76

Saab AB Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 7.70 7.96 8.28 8.73 8.72

Competitive Comparison of Saab AB's Operating Margin %

For the Aerospace & Defense subindustry, Saab AB'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.


Saab AB's Operating Margin % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Saab AB's Operating Margin % distribution charts can be found below:

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



Saab AB 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.

Saab AB'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 )
=440.649 / 5031.294
=8.76 %

Saab AB's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=115.456 / 1324.274
=8.72 %

* 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.


Saab AB  (OTCPK:SAABF) 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.


Saab AB Operating Margin % Related Terms

Thank you for viewing the detailed overview of Saab AB's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Saab AB Business Description

Address
Olof Palmes gata 17, 5th Floor, Stockholm, SWE, SE-111 22
Saab supplies products and services for military, defense, and civil security. The company operates in four segments: aeronautics, dynamics, surveillance, and Kockums. Aeronautics involves the manufacturing and support of defense and commercial aerial systems. Dynamics produces combat weapons and defense training and management systems. Surveillance supplies security services, and creates traffic management technology and aviation parts. Kockums offers solutions for naval missions. Over three fourths of Saab's sales are from the defense sector. The company sells to multiple geographic regions, but over half of its sales come from Europe.

Saab AB Headlines

From GuruFocus

Q3 2019 Saab AB Earnings Call Transcript

By GuruFocus Research 02-14-2024

Saab AB Annual Submarine Seminar (Virtual) Transcript

By GuruFocus Research 02-14-2024

Q2 2023 Saab AB Earnings Call Transcript

By GuruFocus Research 02-14-2024

Q1 2021 Saab AB Earnings Call Transcript

By GuruFocus Research 02-14-2024

Q2 2024 Saab AB Earnings Call Transcript

By GuruFocus Research 07-21-2024

Q1 2024 Saab AB Earnings Call Transcript

By GuruFocus Research 04-27-2024

Q3 2021 Saab AB Earnings Call Transcript

By GuruFocus Research 02-14-2024

Saab AB Annual Sensor Seminar Transcript

By GuruFocus Research 02-14-2024