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Watta Holding Bhd (XKLS:7226) Operating Margin % : -29.86% (As of Dec. 2023)


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What is Watta Holding Bhd Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Watta Holding Bhd's Operating Income for the three months ended in Dec. 2023 was RM-0.64 Mil. Watta Holding Bhd's Revenue for the three months ended in Dec. 2023 was RM2.14 Mil. Therefore, Watta Holding Bhd's Operating Margin % for the quarter that ended in Dec. 2023 was -29.86%.

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

XKLS:7226' s Operating Margin % Range Over the Past 10 Years
Min: -30.26   Med: -14.48   Max: 10.09
Current: -30.22


XKLS:7226's Operating Margin % is ranked worse than
89.69% of 2463 companies
in the Hardware industry
Industry Median: 3.65 vs XKLS:7226: -30.22

Watta Holding Bhd's 5-Year Average Operating Margin % Growth Rate was -0.40% per year.

Watta Holding Bhd's Operating Income for the three months ended in Dec. 2023 was RM-0.64 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was RM-2.60 Mil.


Watta Holding Bhd Operating Margin % Historical Data

The historical data trend for Watta Holding 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.

Watta Holding Bhd Operating Margin % Chart

Watta Holding Bhd Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -17.71 -27.15 -15.20 -13.76 -30.26

Watta Holding Bhd Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -18.62 -26.54 -33.53 -31.07 -29.86

Competitive Comparison of Watta Holding Bhd's Operating Margin %

For the Communication Equipment subindustry, Watta Holding 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.


Watta Holding Bhd's Operating Margin % Distribution in the Hardware Industry

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

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



Watta Holding 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.

Watta Holding Bhd's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=-2.605 / 8.609
=-30.26 %

Watta Holding Bhd's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-0.64 / 2.143
=-29.86 %

* 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.


Watta Holding Bhd  (XKLS:7226) 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.


Watta Holding Bhd Operating Margin % Related Terms

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Watta Holding Bhd (XKLS:7226) Business Description

Traded in Other Exchanges
N/A
Address
Plaza Berjaya, Jalan Imbi, 12th Floor, Menara Cosway, Wilayah Persekutuan, Kuala Lumpur, MYS, 55100
Watta Holding Bhd is a company whose principal activities consist of investment holding and the provision of management services. The Group is organized into business segments based on their products and services, and has two reportable operating segments: Services and Investment Holding and others. The service segment includes Servicing telecommunication equipment and related products. It operates in a single geographical segment, which is Malaysia.

Watta Holding Bhd (XKLS:7226) Headlines

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