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Swiss Water Decaffeinated Coffee (TSX:SWP) Operating Margin % : 8.18% (As of Dec. 2023)


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What is Swiss Water Decaffeinated Coffee Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Swiss Water Decaffeinated Coffee's Operating Income for the three months ended in Dec. 2023 was C$3.4 Mil. Swiss Water Decaffeinated Coffee's Revenue for the three months ended in Dec. 2023 was C$41.2 Mil. Therefore, Swiss Water Decaffeinated Coffee's Operating Margin % for the quarter that ended in Dec. 2023 was 8.18%.

Warning Sign:

Swiss Water Decaffeinated Coffee Inc operating margin has been in a 5-year decline. The average rate of decline per year is -5.5%.

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

TSX:SWP' s Operating Margin % Range Over the Past 10 Years
Min: 3.39   Med: 5.55   Max: 8.69
Current: 3.39


TSX:SWP's Operating Margin % is ranked worse than
57.5% of 1854 companies
in the Consumer Packaged Goods industry
Industry Median: 4.85 vs TSX:SWP: 3.39

Swiss Water Decaffeinated Coffee's 5-Year Average Operating Margin % Growth Rate was -5.50% per year.

Swiss Water Decaffeinated Coffee's Operating Income for the three months ended in Dec. 2023 was C$3.4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was C$5.6 Mil.


Swiss Water Decaffeinated Coffee Operating Margin % Historical Data

The historical data trend for Swiss Water Decaffeinated Coffee'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.

Swiss Water Decaffeinated Coffee Operating Margin % Chart

Swiss Water Decaffeinated Coffee 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 5.31 5.26 5.35 7.56 3.39

Swiss Water Decaffeinated Coffee Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 6.35 2.90 0.18 2.32 8.18

Competitive Comparison of Swiss Water Decaffeinated Coffee's Operating Margin %

For the Packaged Foods subindustry, Swiss Water Decaffeinated Coffee'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.


Swiss Water Decaffeinated Coffee's Operating Margin % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Swiss Water Decaffeinated Coffee's Operating Margin % falls into.



Swiss Water Decaffeinated Coffee 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.

Swiss Water Decaffeinated Coffee'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 )
=5.63 / 166.277
=3.39 %

Swiss Water Decaffeinated Coffee'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 )
=3.372 / 41.237
=8.18 %

* 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.


Swiss Water Decaffeinated Coffee  (TSX:SWP) 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.


Swiss Water Decaffeinated Coffee Operating Margin % Related Terms

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Swiss Water Decaffeinated Coffee (TSX:SWP) Business Description

Traded in Other Exchanges
Address
7750 Beedie Way, Delta, BC, CAN, V4G 0A5
Swiss Water Decaffeinated Coffee Inc is a specialty coffee company, that offers green coffee decaffeination, and Seaforth Supply Chain Solutions Inc provides green coffee handling and storage services. It is a premium decaffeination of green coffee in Canadian British Columbia. It employs the proprietary Swiss Water Process to decaffeinate green coffee without the use of chemicals, leveraging science-based systems and controls to produce coffee. The company's sales are generated in a single segment of decaffeination of green coffee beans. It also operates in three geographic areas - Canada, the United States, and other international markets, and the majority of revenue comes from the United States.