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SolidX AB (XSAT:SOLIDX) Operating Margin % : 2.90% (As of Jan. 2024)


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What is SolidX AB Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. SolidX AB's Operating Income for the three months ended in Jan. 2024 was kr1.0 Mil. SolidX AB's Revenue for the three months ended in Jan. 2024 was kr34.1 Mil. Therefore, SolidX AB's Operating Margin % for the quarter that ended in Jan. 2024 was 2.90%.

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

XSAT:SOLIDX' s Operating Margin % Range Over the Past 10 Years
Min: 2.83   Med: 11.78   Max: 14.29
Current: 2.83


XSAT:SOLIDX's Operating Margin % is ranked worse than
51.53% of 2752 companies
in the Software industry
Industry Median: 3.435 vs XSAT:SOLIDX: 2.83

SolidX AB's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

SolidX AB's Operating Income for the three months ended in Jan. 2024 was kr1.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was kr3.1 Mil.


SolidX AB Operating Margin % Historical Data

The historical data trend for SolidX AB'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.

SolidX AB Operating Margin % Chart

SolidX AB Annual Data
Trend Apr20 Apr21 Apr22
Operating Margin %
11.78 14.29 10.01

SolidX AB Quarterly Data
Apr20 Jul20 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 9.26 2.23 -5.62 10.78 2.90

Competitive Comparison of SolidX AB's Operating Margin %

For the Information Technology Services subindustry, SolidX AB'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.


SolidX AB's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, SolidX AB's Operating Margin % distribution charts can be found below:

* The bar in red indicates where SolidX AB's Operating Margin % falls into.



SolidX AB 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.

SolidX AB's Operating Margin % for the fiscal year that ended in Apr. 2022 is calculated as

Operating Margin %=Operating Income (A: Apr. 2022 ) / Revenue (A: Apr. 2022 )
=6.385 / 63.815
=10.01 %

SolidX AB'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 )
=0.989 / 34.103
=2.90 %

* 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.


SolidX AB  (XSAT:SOLIDX) 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.


SolidX AB Operating Margin % Related Terms

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SolidX AB (XSAT:SOLIDX) Business Description

Traded in Other Exchanges
N/A
Address
Sturegatan 12 A, Eslov, SWE, 241 31
SolidX AB is an IT consulting company in Sweden.

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