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VRTC (Veritec) Operating Margin % : -617.95% (As of Sep. 2024)


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What is Veritec Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Veritec's Operating Income for the three months ended in Sep. 2024 was $-0.24 Mil. Veritec's Revenue for the three months ended in Sep. 2024 was $0.04 Mil. Therefore, Veritec's Operating Margin % for the quarter that ended in Sep. 2024 was -617.95%.

Good Sign:

Veritec Inc operating margin is expanding. Margin expansion is usually a good sign.

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

VRTC' s Operating Margin % Range Over the Past 10 Years
Min: -240.49   Med: -136.41   Max: -43.13
Current: -129.86


VRTC's Operating Margin % is ranked worse than
92.05% of 2769 companies
in the Software industry
Industry Median: 3.79 vs VRTC: -129.86

Veritec's 5-Year Average Operating Margin % Growth Rate was 0.20% per year.

Veritec's Operating Income for the three months ended in Sep. 2024 was $-0.24 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $-0.57 Mil.

Warning Sign:

Veritec Inc has never been profitable in the past 3 years. It lost money every year.


Veritec Operating Margin % Historical Data

The historical data trend for Veritec'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.

Veritec Operating Margin % Chart

Veritec Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -91.78 -178.41 -162.61 -207.30 -110.20

Veritec Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -301.72 -91.59 -121.32 -43.75 -617.95

Competitive Comparison of Veritec's Operating Margin %

For the Software - Application subindustry, Veritec'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.


Veritec's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Veritec's Operating Margin % distribution charts can be found below:

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


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Veritec 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.

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

Operating Margin %=Operating Income (A: Jun. 2024 ) / Revenue (A: Jun. 2024 )
=-0.508 / 0.461
=-110.20 %

Veritec'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 )
=-0.241 / 0.039
=-617.95 %

* 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.


Veritec  (OTCPK:VRTC) 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.


Veritec Operating Margin % Related Terms

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


Veritec Business Description

Traded in Other Exchanges
N/A
Address
2445 Winnetka Avenue North, Golden Valley, MN, USA, 55427
Veritec Inc is engaged in the development, marketing, sales, and licensing of products and rendering of professional services. The company renders professional services related to mobile banking technology. Its mobile banking technology is used to offer Prepaid Card Programs to sponsor banks and approved applicants/cardholders. The products and services offered by the company include MTC Debit Card Visa Prepaid Card Programs, blinx ON-OFF Debit Card Visa Prepaid Card Programs, Custom Branded Debit Card Programs, and blinxPay Mobile Wallet App. Geographically, it derives revenue from the United States.
Executives
Matthews Group, Llc 10 percent owner 2445 WINNETKA AVENUE, GOLDEN VALLEY MN 55427
Van Thuy Tran director, 10 percent owner, officer: CEO & President 2445 WINNETKA AVENUE, GOLDEN VALLEY MN 55427
Lawrence J Johanns 10 percent owner 2445 WINNETKA AVENUE, GOLDEN VALLEY MN 55427
Laird E. Powers director 530 HAWTHORNE COURT, LOS ALTOS CA 94024
David Christopher Reiling director 4516 FREMONT AVENUE SOUTH, MINNEAPOLIS MN 55419
Robert W Junghans director 2 SKILLMAN LANE, NORTH OAKS MN 55127
Jeffrey J Hattara officer: Chief Executive Officer 319 BARRY AVENUE SOUTH, SUITE 300, WAYZATA MN 55391
Gerald David Fors officer: CFO 7321-15TH AVE. SO., RICHFIELD MN 55423
Larry Matthews director 7601 5TH AVE., RICHFIELD MN 55423
Charles E Boyer director

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