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Seiko Group (TSE:8050) Operating Margin % : 8.04% (As of Dec. 2023)


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What is Seiko Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Seiko Group's Operating Income for the three months ended in Dec. 2023 was 円5,982 Mil. Seiko Group's Revenue for the three months ended in Dec. 2023 was 円74,377 Mil. Therefore, Seiko Group's Operating Margin % for the quarter that ended in Dec. 2023 was 8.04%.

Good Sign:

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

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

TSE:8050' s Operating Margin % Range Over the Past 10 Years
Min: 1.08   Med: 3.89   Max: 5.32
Current: 5.32


TSE:8050's Operating Margin % is ranked better than
58.55% of 1035 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 3.8 vs TSE:8050: 5.32

Seiko Group's 5-Year Average Operating Margin % Growth Rate was 13.60% per year.

Seiko Group's Operating Income for the three months ended in Dec. 2023 was 円5,982 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was 円14,738 Mil.


Seiko Group Operating Margin % Historical Data

The historical data trend for Seiko Group'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.

Seiko Group Operating Margin % Chart

Seiko Group 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 2.56 1.08 3.69 4.31 5.32

Seiko Group Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -1.92 4.49 7.81 8.04 0.84

Competitive Comparison of Seiko Group's Operating Margin %

For the Footwear & Accessories subindustry, Seiko Group'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.


Seiko Group's Operating Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Seiko Group's Operating Margin % distribution charts can be found below:

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



Seiko Group 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.

Seiko Group'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 )
=14738 / 276807
=5.32 %

Seiko Group's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=5982 / 74377
=8.04 %

* 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.


Seiko Group  (TSE:8050) 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.


Seiko Group Operating Margin % Related Terms

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Seiko Group (TSE:8050) Business Description

Traded in Other Exchanges
N/A
Address
8-10, Toranomon 2-chome, Minato-ku, Tokyo, JPN, 105-8505
Seiko Group Corp is a Japanese manufacturer of watches and electronic devices. The company organizes itself into four segments, based on product type: watches, electronic devices, systems solutions, and others. The watches business, which contributes more than half of the company's revenue, manufactures men's and ladies' fashion watches. The electronic devices business, the next most significant contributor to revenue, produces components such as semiconductors, camera shutters, inkjet print heads, thermal printers, micro-batteries, and radiation-measuring equipment. Combined sales in the watches and electronic devices segments constitute the vast majority of consolidated revenue. The company derives approximately half its revenue domestically.

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