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SNS Network Technology Bhd (XKLS:0259) Operating Margin % : 4.82% (As of Jan. 2024)


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What is SNS Network Technology Bhd Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. SNS Network Technology Bhd's Operating Income for the three months ended in Jan. 2024 was RM19 Mil. SNS Network Technology Bhd's Revenue for the three months ended in Jan. 2024 was RM390 Mil. Therefore, SNS Network Technology Bhd's Operating Margin % for the quarter that ended in Jan. 2024 was 4.82%.

Good Sign:

SNS Network Technology Bhd operating margin is expanding. Margin expansion is usually a good sign.

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

XKLS:0259' s Operating Margin % Range Over the Past 10 Years
Min: 2.04   Med: 4.1   Max: 4.67
Current: 3.82


XKLS:0259's Operating Margin % is ranked better than
51.65% of 2461 companies
in the Hardware industry
Industry Median: 3.44 vs XKLS:0259: 3.82

SNS Network Technology Bhd's 5-Year Average Operating Margin % Growth Rate was 13.30% per year.

SNS Network Technology Bhd's Operating Income for the three months ended in Jan. 2024 was RM19 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was RM49 Mil.


SNS Network Technology Bhd Operating Margin % Historical Data

The historical data trend for SNS Network Technology 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.

SNS Network Technology Bhd Operating Margin % Chart

SNS Network Technology Bhd Annual Data
Trend Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Operating Margin %
Get a 7-Day Free Trial 2.04 4.67 4.56 4.37 3.82

SNS Network Technology Bhd Quarterly Data
Jan19 Jan20 Jan21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.55 3.91 3.86 2.20 4.82

Competitive Comparison of SNS Network Technology Bhd's Operating Margin %

For the Electronics & Computer Distribution subindustry, SNS Network Technology 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.


SNS Network Technology Bhd's Operating Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, SNS Network Technology Bhd's Operating Margin % distribution charts can be found below:

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



SNS Network Technology 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.

SNS Network Technology Bhd's Operating Margin % for the fiscal year that ended in Jan. 2024 is calculated as

Operating Margin %=Operating Income (A: Jan. 2024 ) / Revenue (A: Jan. 2024 )
=48.791 / 1276.115
=3.82 %

SNS Network Technology Bhd's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=18.805 / 390.111
=4.82 %

* 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.


SNS Network Technology Bhd  (XKLS:0259) 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.


SNS Network Technology Bhd Operating Margin % Related Terms

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SNS Network Technology Bhd (XKLS:0259) Business Description

Traded in Other Exchanges
N/A
Address
61, Jalan Sultan Nazrin Shah, Ipoh, PRK, MYS, 30250
SNS Network Technology Bhd is principally involved in the provision of information and communications technology (ICT) products, services, and solutions. The company's core business activities are the sale of ICT products comprising hardware, devices, and related peripherals, as well as the provision of ICT services and solutions; and the provision of device repair and related services, as well as the sale of broadband services.

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