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V.S Industry Bhd (XKLS:6963) Operating Margin % : 2.02% (As of Jan. 2024)


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What is V.S Industry Bhd Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. V.S Industry Bhd's Operating Income for the three months ended in Jan. 2024 was RM18 Mil. V.S Industry Bhd's Revenue for the three months ended in Jan. 2024 was RM895 Mil. Therefore, V.S Industry Bhd's Operating Margin % for the quarter that ended in Jan. 2024 was 2.02%.

Good Sign:

V.S Industry Bhd operating margin is expanding. Margin expansion is usually a good sign.

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

XKLS:6963' s Operating Margin % Range Over the Past 10 Years
Min: 3.38   Med: 5.73   Max: 9.09
Current: 5.32


XKLS:6963's Operating Margin % is ranked better than
58.69% of 2464 companies
in the Hardware industry
Industry Median: 3.71 vs XKLS:6963: 5.32

V.S Industry Bhd's 5-Year Average Operating Margin % Growth Rate was 4.70% per year.

V.S Industry Bhd's Operating Income for the three months ended in Jan. 2024 was RM18 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was RM224 Mil.


V.S Industry Bhd Operating Margin % Historical Data

The historical data trend for V.S Industry 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.

V.S Industry Bhd Operating Margin % Chart

V.S Industry Bhd Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.10 4.97 8.42 5.52 5.94

V.S Industry Bhd Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.20 3.89 8.49 5.93 2.02

Competitive Comparison of V.S Industry Bhd's Operating Margin %

For the Electronic Components subindustry, V.S Industry 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.


V.S Industry Bhd's Operating Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, V.S Industry Bhd's Operating Margin % distribution charts can be found below:

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



V.S Industry 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.

V.S Industry Bhd's Operating Margin % for the fiscal year that ended in Jul. 2023 is calculated as

Operating Margin %=Operating Income (A: Jul. 2023 ) / Revenue (A: Jul. 2023 )
=273.433 / 4604.221
=5.94 %

V.S Industry 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 )
=18.097 / 895.022
=2.02 %

* 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.


V.S Industry Bhd  (XKLS:6963) 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.


V.S Industry Bhd Operating Margin % Related Terms

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


V.S Industry Bhd (XKLS:6963) Business Description

Traded in Other Exchanges
N/A
Address
No. 88 Jalan I-Park SAC 5, Taman Perindustrian I-Park SAC, Senai, JHR, MYS, 81400
V.S Industry Bhd is engaged in the manufacturing, assembling, and sale of electronic and electrical products and plastic moulded components and parts. It is an integrated Electronics Manufacturing Services (EMS) provider in the region. The manufacturing services include plastic injection mould design and fabrication, a wide range of injection tonnage and finishing processes, large-scale production of printed circuit boards, automated assembly, and final processes of packaging and logistics. Geographically, it derives a majority of its revenue from Malaysia and also has a presence in the United States of America, Europe, Indonesia, Singapore, the People's Republic of China, and others.

V.S Industry Bhd (XKLS:6963) Headlines

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