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Saudi Chemical Co (SAU:2230) Operating Margin % : 8.96% (As of Sep. 2024)


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What is Saudi Chemical Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Saudi Chemical Co's Operating Income for the three months ended in Sep. 2024 was ﷼121 Mil. Saudi Chemical Co's Revenue for the three months ended in Sep. 2024 was ﷼1,354 Mil. Therefore, Saudi Chemical Co's Operating Margin % for the quarter that ended in Sep. 2024 was 8.96%.

Good Sign:

Saudi Chemical Co operating margin is expanding. Margin expansion is usually a good sign.

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

SAU:2230' s Operating Margin % Range Over the Past 10 Years
Min: 4.18   Med: 6.39   Max: 12.66
Current: 8.15


SAU:2230's Operating Margin % is ranked better than
54.37% of 995 companies
in the Drug Manufacturers industry
Industry Median: 6.62 vs SAU:2230: 8.15

Saudi Chemical Co's 5-Year Average Operating Margin % Growth Rate was 1.10% per year.

Saudi Chemical Co's Operating Income for the three months ended in Sep. 2024 was ﷼121 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was ﷼359 Mil.


Saudi Chemical Co Operating Margin % Historical Data

The historical data trend for Saudi Chemical Co'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.

Saudi Chemical Co Operating Margin % Chart

Saudi Chemical Co 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 4.26 5.23 4.18 4.80 6.54

Saudi Chemical Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 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 4.70 6.00 8.42 7.25 8.96

Competitive Comparison of Saudi Chemical Co's Operating Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Saudi Chemical Co'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.


Saudi Chemical Co's Operating Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Saudi Chemical Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Saudi Chemical Co's Operating Margin % falls into.



Saudi Chemical Co 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.

Saudi Chemical Co'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 )
=317.342 / 4854.848
=6.54 %

Saudi Chemical Co'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 )
=121.343 / 1353.614
=8.96 %

* 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.


Saudi Chemical Co  (SAU:2230) 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.


Saudi Chemical Co Operating Margin % Related Terms

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


Saudi Chemical Co Business Description

Traded in Other Exchanges
N/A
Address
7632 Al-Ihsa Road, Al-Malaz, P.O. Box 2665, Riyadh, SAU, 11461
Saudi Chemical Co, along with its subsidiaries, is engaged in the manufacturing and distribution of explosives and their derivatives. Its other business operations include providing technical support services in explosions, wholesale and retail trading in medicines, medical materials and syrups, pharmaceutical preparations, medical and surgical tools, and equipment, supplies of hospitals and medical centers, and manufacture of ammonium nitrate. The company operates in three segments: Explosives, Medicines & medical supplies, and Production of Ammonium Nitrate. It generates the majority of its revenue from Medicines & medical supplies.

Saudi Chemical Co Headlines

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