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Mori Trust Reit (TSE:8961) Operating Margin % : 65.70% (As of Feb. 2024)


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What is Mori Trust Reit Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Mori Trust Reit's Operating Income for the six months ended in Feb. 2024 was 円7,937 Mil. Mori Trust Reit's Revenue for the six months ended in Feb. 2024 was 円12,081 Mil. Therefore, Mori Trust Reit's Operating Margin % for the quarter that ended in Feb. 2024 was 65.70%.

Warning Sign:

Mori Trust Reit Inc operating margin has been in a 5-year decline. The average rate of decline per year is -1.9%.

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

TSE:8961' s Operating Margin % Range Over the Past 10 Years
Min: 52.3   Med: 59.96   Max: 64.8
Current: 64.8


TSE:8961's Operating Margin % is ranked better than
70.29% of 764 companies
in the REITs industry
Industry Median: 51.71 vs TSE:8961: 64.80

Mori Trust Reit's 5-Year Average Operating Margin % Growth Rate was -1.90% per year.

Mori Trust Reit's Operating Income for the six months ended in Feb. 2024 was 円7,937 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2024 was 円15,441 Mil.


Mori Trust Reit Operating Margin % Historical Data

The historical data trend for Mori Trust Reit'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.

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Mori Trust Reit Operating Margin % Chart

Mori Trust Reit Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 60.05 60.42 61.04 61.29 54.89

Mori Trust Reit Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Aug23 Feb24 Aug24
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 59.12 49.67 62.97 65.70 63.88

Competitive Comparison of Mori Trust Reit's Operating Margin %

For the REIT - Office subindustry, Mori Trust Reit'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.


Mori Trust Reit's Operating Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Mori Trust Reit's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Mori Trust Reit's Operating Margin % falls into.



Mori Trust Reit 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.

Mori Trust Reit's Operating Margin % for the fiscal year that ended in Sep. 2022 is calculated as

Operating Margin %=Operating Income (A: Sep. 2022 ) / Revenue (A: Sep. 2022 )
=8470.674 / 15430.731
=54.89 %

Mori Trust Reit's Operating Margin % for the quarter that ended in Feb. 2024 is calculated as

Operating Margin %=Operating Income (Q: Feb. 2024 ) / Revenue (Q: Feb. 2024 )
=7937.241 / 12080.806
=65.70 %

* 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.


Mori Trust Reit  (TSE:8961) 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.


Mori Trust Reit Operating Margin % Related Terms

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Mori Trust Reit Business Description

Traded in Other Exchanges
N/A
Address
3-1 Toranomon 4-chome, Minato-ku, Tokyo, JPN
Mori Trust Reit Inc is a real estate investment trust company. Its objective is to achieve sustainable growth and stable earnings from mid- to long-term perspectives. It invests in office buildings, commercial facilities, housings, and hotels. The company owns more than 10 properties in and around Central Tokyo and others. The company generates its revenue from its leasing business.

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