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Matrix IT (XTAE:MTRX) Operating Margin % : 7.61% (As of Mar. 2024)


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What is Matrix IT Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Matrix IT's Operating Income for the three months ended in Mar. 2024 was ₪111 Mil. Matrix IT's Revenue for the three months ended in Mar. 2024 was ₪1,454 Mil. Therefore, Matrix IT's Operating Margin % for the quarter that ended in Mar. 2024 was 7.61%.

Good Sign:

Matrix IT Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

XTAE:MTRX' s Operating Margin % Range Over the Past 10 Years
Min: 6.8   Med: 7.05   Max: 7.55
Current: 7.46


XTAE:MTRX's Operating Margin % is ranked better than
62.71% of 2762 companies
in the Software industry
Industry Median: 3.65 vs XTAE:MTRX: 7.46

Matrix IT's 5-Year Average Operating Margin % Growth Rate was 1.60% per year.

Matrix IT's Operating Income for the three months ended in Mar. 2024 was ₪111 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₪402 Mil.


Matrix IT Operating Margin % Historical Data

The historical data trend for Matrix IT'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.

Matrix IT Operating Margin % Chart

Matrix IT Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.08 7.51 7.55 7.50 7.51

Matrix IT Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 7.86 7.59 6.99 7.62 7.61

Competitive Comparison of Matrix IT's Operating Margin %

For the Software - Application subindustry, Matrix IT'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.


Matrix IT's Operating Margin % Distribution in the Software Industry

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

* The bar in red indicates where Matrix IT's Operating Margin % falls into.



Matrix IT 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.

Matrix IT'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 )
=393.097 / 5232.105
=7.51 %

Matrix IT's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=110.678 / 1453.713
=7.61 %

* 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.


Matrix IT  (XTAE:MTRX) 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.


Matrix IT Operating Margin % Related Terms

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Matrix IT (XTAE:MTRX) Business Description

Traded in Other Exchanges
N/A
Address
3 Abba Eban Boulevard, Herzlia Pituach, ISR, 4612001
Matrix IT Ltd is an information technology company. It manages segments such as software solutions and value added services in Israel, software product marketing and support services, computer infrastructure and integration solutions, training and implementation, and software solutions and services in USA. Majority of its revenue is derived from its software solutions and services segment. The company's revenue is generated from its Israel operations.