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SKFOF (Sika AG) Operating Margin % : 14.88% (As of Dec. 2024)


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What is Sika AG Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Sika AG's Operating Income for the six months ended in Dec. 2024 was $989 Mil. Sika AG's Revenue for the six months ended in Dec. 2024 was $6,649 Mil. Therefore, Sika AG's Operating Margin % for the quarter that ended in Dec. 2024 was 14.88%.

Good Sign:

Sika AG operating margin is expanding. Margin expansion is usually a good sign.

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

SKFOF' s Operating Margin % Range Over the Past 10 Years
Min: 12.27   Med: 14.11   Max: 15.06
Current: 14.57


SKFOF's Operating Margin % is ranked better than
82.16% of 1530 companies
in the Chemicals industry
Industry Median: 5.865 vs SKFOF: 14.57

Sika AG's 5-Year Average Operating Margin % Growth Rate was 1.40% per year.

Sika AG's Operating Income for the six months ended in Dec. 2024 was $989 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was $1,920 Mil.


Sika AG Operating Margin % Historical Data

The historical data trend for Sika AG'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.

Sika AG Operating Margin % Chart

Sika AG Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.35 15.04 15.06 13.88 14.57

Sika AG Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 10.33 14.11 13.67 14.26 14.88

Competitive Comparison of Sika AG's Operating Margin %

For the Specialty Chemicals subindustry, Sika AG'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.


Sika AG's Operating Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Sika AG's Operating Margin % distribution charts can be found below:

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


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Sika AG 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.

Sika AG's Operating Margin % for the fiscal year that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=1922.275 / 13193.248
=14.57 %

Sika AG's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=989.121 / 6649.058
=14.88 %

* 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.


Sika AG  (OTCPK:SKFOF) 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.


Sika AG Operating Margin % Related Terms

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


Sika AG Business Description

Address
Zugerstrasse 50, Baar, CHE, 6340
Established in 1910, Sika produces specialty chemicals primarily used by the construction sector (85% of sales). Its products are mainly used for bonding, sealing, reinforcing, and protecting in the construction and automotive industries. Approximately 70% of its products have a positive impact on sustainability for customers. Sika has a global manufacturing footprint of more than 400 factories spread across over 100 countries.

Sika AG Headlines

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