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Nippn (TSE:2001) Operating Margin % : 5.24% (As of Sep. 2024)


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What is Nippn Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Nippn's Operating Income for the three months ended in Sep. 2024 was 円5,391 Mil. Nippn's Revenue for the three months ended in Sep. 2024 was 円102,940 Mil. Therefore, Nippn's Operating Margin % for the quarter that ended in Sep. 2024 was 5.24%.

Good Sign:

Nippn Corp operating margin is expanding. Margin expansion is usually a good sign.

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

TSE:2001' s Operating Margin % Range Over the Past 10 Years
Min: 2.82   Med: 3.44   Max: 5.08
Current: 4.76


TSE:2001's Operating Margin % is ranked worse than
54.15% of 1880 companies
in the Consumer Packaged Goods industry
Industry Median: 5.515 vs TSE:2001: 4.76

Nippn's 5-Year Average Operating Margin % Growth Rate was 6.40% per year.

Nippn's Operating Income for the three months ended in Sep. 2024 was 円5,391 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was 円19,421 Mil.


Nippn Operating Margin % Historical Data

The historical data trend for Nippn'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.

Nippn Operating Margin % Chart

Nippn Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.22 3.60 3.51 3.36 5.08

Nippn Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 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 6.57 2.45 5.03 5.24 6.09

Competitive Comparison of Nippn's Operating Margin %

For the Packaged Foods subindustry, Nippn'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.


Nippn's Operating Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Nippn's Operating Margin % distribution charts can be found below:

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



Nippn 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.

Nippn's Operating Margin % for the fiscal year that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=20343 / 400514
=5.08 %

Nippn'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 )
=5391 / 102940
=5.24 %

* 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.


Nippn  (TSE:2001) 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.


Nippn Operating Margin % Related Terms

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Nippn Business Description

Traded in Other Exchanges
N/A
Address
4-8 Kojimachi, Chiyoda-ku, Tokyo, JPN, 102-0083
Nippn Corp along with its subsidiaries is into the business of flour milling, manufacture and sale of food ingredients, processed foods, meal solutions, frozen foods, manufacture and sell of health foods, cosmetics, pet foods and other business including management of sports facilities and bioscience business. The company operates in Japan, United States, Indonesia, and Thailand.

Nippn Headlines

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