Operating Margin % is calculated as Operating Income divided by its Revenue. Lafarge's Operating Income for the
three
months ended in Jun. 2015 was CHF-50 Mil. Lafarge's Revenue for the
three
months ended in Jun. 2015 was CHF3,703 Mil. Therefore, Lafarge's Operating Margin % for the quarter that ended in Jun. 2015 was -1.36%.
Warning Sign:
Lafarge SA operating margin has been in 5-year decline. The average rate of decline per year is -2.6%.
The historical rank and industry rank for Lafarge's Operating Margin % or its related term are showing as below:
XSWX:LG'
s Operating Margin % Range Over the Past 10 Years
Min: 6.69 Med: 14.58 Max: 18.67
Current: 6.69
XSWX:LG's Operating Margin % is not ranked
in the Building Materials industry.
Industry Median: 7.925
vs XSWX:LG: 6.69
Lafarge's 5-Year Average Operating Margin % Growth Rate was -2.60% per year.
Lafarge's Operating Income for the
three
months ended in Jun. 2015 was CHF-50 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2015 was CHF993 Mil.
Lafarge Operating Margin % Historical Data
The historical data trend for Lafarge'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.
Competitive Comparison of Lafarge's Operating Margin %
For the Building Materials subindustry, Lafarge'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.
Lafarge's Operating Margin % Distribution in the Building Materials Industry
For the Building Materials industry and Basic Materials sector, Lafarge's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lafarge's Operating Margin % falls into.
Lafarge 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.
Lafarge's Operating Margin % for the fiscal year that ended in Dec. 2014 is calculated as
* 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.
Lafarge (XSWX:LG) 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 Nokias 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.
Lafarge Operating Margin % Related Terms
Thank you for viewing the detailed overview of Lafarge's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lafarge SA is a French limited liability company governed by French law and was founded in France in 1833 and was incorporated in 1884 under the name "J. et A. Pavin de Lafarge". The Company provides building materials. It is engaged in producing & selling cement, aggregates and ready-mix concrete, mostly under the "Lafarge" brand name. Its building products and solutions are used to construct and renovate homes, buildings and infrastructures. At year-end 2013, Company cement production operated, in 56 countries, 113 cement plants and 42 grinding plants, with an annual production capacity of 221 million tons. It also manages cement trading activities. The Company aggregates and concrete are used as raw materials for concrete, masonry, asphalt, and other industrial processes, and as base materials for roads, landï¬lls, and building. As of December 31, 2013, Company had approximately 437 production facilities for aggregates in 23 countries. The Company's Ready-mix concrete had 1,026 concrete plants in 33 countries as of December 31, 2014. The Company also produces asphalt in North America and the United Kingdom, and sells either as a stand-alone product, or in conjunction with contracted paving. The Company operates in Western Europe, North America, Central & Eastern Europe, Middle East & Africa, and Asia.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
XSWX:LG has been successfully added to your 