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Cekd Bhd (XKLS:0238) Operating Margin % : 21.73% (As of Feb. 2024)


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What is Cekd Bhd Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Cekd Bhd's Operating Income for the three months ended in Feb. 2024 was RM1.79 Mil. Cekd Bhd's Revenue for the three months ended in Feb. 2024 was RM8.22 Mil. Therefore, Cekd Bhd's Operating Margin % for the quarter that ended in Feb. 2024 was 21.73%.

Warning Sign:

Cekd Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -6.5%.

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

XKLS:0238' s Operating Margin % Range Over the Past 10 Years
Min: 19.61   Med: 27.47   Max: 30.92
Current: 23.55


XKLS:0238's Operating Margin % is ranked better than
95.59% of 2968 companies
in the Industrial Products industry
Industry Median: 6.94 vs XKLS:0238: 23.55

Cekd Bhd's 5-Year Average Operating Margin % Growth Rate was -6.50% per year.

Cekd Bhd's Operating Income for the three months ended in Feb. 2024 was RM1.79 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2024 was RM7.98 Mil.


Cekd Bhd Operating Margin % Historical Data

The historical data trend for Cekd Bhd'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.

Cekd Bhd Operating Margin % Chart

Cekd Bhd Annual Data
Trend Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Operating Margin %
Get a 7-Day Free Trial 26.55 30.92 29.69 22.89 19.61

Cekd Bhd Quarterly Data
Aug18 Aug19 Aug20 Mar21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
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 17.89 29.14 12.16 30.26 21.73

Competitive Comparison of Cekd Bhd's Operating Margin %

For the Metal Fabrication subindustry, Cekd Bhd'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.


Cekd Bhd's Operating Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Cekd Bhd's Operating Margin % distribution charts can be found below:

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



Cekd Bhd 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.

Cekd Bhd's Operating Margin % for the fiscal year that ended in Aug. 2023 is calculated as

Operating Margin %=Operating Income (A: Aug. 2023 ) / Revenue (A: Aug. 2023 )
=6.382 / 32.55
=19.61 %

Cekd Bhd'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 )
=1.787 / 8.224
=21.73 %

* 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.


Cekd Bhd  (XKLS:0238) 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.


Cekd Bhd Operating Margin % Related Terms

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Cekd Bhd (XKLS:0238) Business Description

Traded in Other Exchanges
N/A
Address
10, Jalan 1/137B, Batu 5, Jalan Kelang Lama, Resource Industrial Centre, Kuala Lumpur, SGR, MYS, 58200
Cekd Bhd is a die-cutting solutions provider and is involved in the manufacturing of die-cutting moulds and trading of related consumables, tools, and accessories, mainly to the paper printing and packaging industry, E&E industry, and other industries such as automotive, plastic packaging, textile, and leather industries. Its operating segments are Manufacturing, Trading, and Investment Holding and it generates the majority of its revenue from the Manufacturing segment.

Cekd Bhd (XKLS:0238) Headlines

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