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Salada Foods Jamaica (XJAM:SALF) Operating Margin % : 20.81% (As of Sep. 2023)


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What is Salada Foods Jamaica Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Salada Foods Jamaica's Operating Income for the three months ended in Sep. 2023 was JMD91 Mil. Salada Foods Jamaica's Revenue for the three months ended in Sep. 2023 was JMD436 Mil. Therefore, Salada Foods Jamaica's Operating Margin % for the quarter that ended in Sep. 2023 was 20.81%.

Warning Sign:

Salada Foods Jamaica Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -6%.

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

XJAM:SALF' s Operating Margin % Range Over the Past 10 Years
Min: 2.15   Med: 15.04   Max: 25.93
Current: 14.92


XJAM:SALF's Operating Margin % is ranked better than
85.33% of 1854 companies
in the Consumer Packaged Goods industry
Industry Median: 4.89 vs XJAM:SALF: 14.92

Salada Foods Jamaica's 5-Year Average Operating Margin % Growth Rate was -6.00% per year.

Salada Foods Jamaica's Operating Income for the three months ended in Sep. 2023 was JMD91 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was JMD209 Mil.


Salada Foods Jamaica Operating Margin % Historical Data

The historical data trend for Salada Foods Jamaica'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.

Salada Foods Jamaica Operating Margin % Chart

Salada Foods Jamaica Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.16 12.03 15.38 17.05 14.92

Salada Foods Jamaica Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 23.28 12.21 15.34 7.94 20.81

Competitive Comparison of Salada Foods Jamaica's Operating Margin %

For the Packaged Foods subindustry, Salada Foods Jamaica'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.


Salada Foods Jamaica's Operating Margin % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Salada Foods Jamaica's Operating Margin % falls into.



Salada Foods Jamaica 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.

Salada Foods Jamaica's Operating Margin % for the fiscal year that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=209.04 / 1400.888
=14.92 %

Salada Foods Jamaica's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=90.663 / 435.703
=20.81 %

* 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.


Salada Foods Jamaica  (XJAM:SALF) 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.


Salada Foods Jamaica Operating Margin % Related Terms

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Salada Foods Jamaica (XJAM:SALF) Business Description

Traded in Other Exchanges
N/A
Address
20 Bell Road, P.O. Box 71, Kingston, JAM, 11
Salada Foods Jamaica Ltd is engaged in the manufacture and sale of instant coffee and roasted and ground coffee beans and other consumer products. Its products include Jamaica Mountain Peak an Instant Coffee prepared from freshly roasted and ground Arabica Beans from which the solubles are extracted and spray-driedIt has two geographic segments Local and Export, and the majority of the revenue comes from the Local.

Salada Foods Jamaica (XJAM:SALF) Headlines

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