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Adtran Networks SE (XTER:ADV) Operating Margin % : -7.22% (As of Jun. 2024)


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What is Adtran Networks SE Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Adtran Networks SE's Operating Income for the three months ended in Jun. 2024 was €-7.8 Mil. Adtran Networks SE's Revenue for the three months ended in Jun. 2024 was €108.2 Mil. Therefore, Adtran Networks SE's Operating Margin % for the quarter that ended in Jun. 2024 was -7.22%.

Warning Sign:

Adtran Networks SE operating margin has been in a 5-year decline. The average rate of decline per year is -2.9%.

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

XTER:ADV' s Operating Margin % Range Over the Past 10 Years
Min: -7.22   Med: 2.84   Max: 7.53
Current: -7.22


XTER:ADV's Operating Margin % is ranked worse than
78.02% of 2443 companies
in the Hardware industry
Industry Median: 3.6 vs XTER:ADV: -7.22

Adtran Networks SE's 5-Year Average Operating Margin % Growth Rate was -2.90% per year.

Adtran Networks SE's Operating Income for the three months ended in Jun. 2024 was €-7.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was €-7.8 Mil.


Adtran Networks SE Operating Margin % Historical Data

The historical data trend for Adtran Networks SE'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.

Adtran Networks SE Operating Margin % Chart

Adtran Networks SE 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 2.35 5.07 7.53 2.70 2.06

Adtran Networks SE Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Dec23 Jun24
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 7.58 3.50 4.76 - -7.22

Competitive Comparison of Adtran Networks SE's Operating Margin %

For the Communication Equipment subindustry, Adtran Networks SE'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.


Adtran Networks SE's Operating Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Adtran Networks SE's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Adtran Networks SE's Operating Margin % falls into.



Adtran Networks SE 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.

Adtran Networks SE'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 )
=12.639 / 613.671
=2.06 %

Adtran Networks SE's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=-7.813 / 108.165
=-7.22 %

* 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.


Adtran Networks SE  (XTER:ADV) 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.


Adtran Networks SE Operating Margin % Related Terms

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Adtran Networks SE Business Description

Traded in Other Exchanges
Address
Campus Martinsried, Fraunhoferstrasse 9a, Munich, BY, DEU, 82152
Adtran Networks SE develops, manufactures, and sells optical and Ethernet-based networking solutions to telecommunications carriers and enterprises to deliver data, storage, voice, and video services. These systems are used by telecommunications service providers, private companies, universities, and government agencies. Some of its product categories are Open optical transport, Packet edge and aggregation, Disaggregated networking, Network virtualization, Network infrastructure assurance, and Automated network management. ADVA's geographical segments are Germany; the Rest of Europe, the Middle East and Africa; the Americas; and Asia-Pacific.