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Seed Co (XZIM:SEED.ZW) Operating Margin % : 0.55% (As of Sep. 2023)


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What is Seed Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Seed Co's Operating Income for the six months ended in Sep. 2023 was ZWL330 Mil. Seed Co's Revenue for the six months ended in Sep. 2023 was ZWL59,710 Mil. Therefore, Seed Co's Operating Margin % for the quarter that ended in Sep. 2023 was 0.55%.

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

XZIM:SEED.ZW' s Operating Margin % Range Over the Past 10 Years
Min: -2.14   Med: 25.16   Max: 50.09
Current: 10.55


XZIM:SEED.ZW's Operating Margin % is ranked better than
70.83% of 240 companies
in the Agriculture industry
Industry Median: 5.37 vs XZIM:SEED.ZW: 10.55

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

Seed Co's Operating Income for the six months ended in Sep. 2023 was ZWL330 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was ZWL7,667 Mil.

Warning Sign:

Seed Co Ltd has recorded a loss in operating income at least once over the past 3 years.


Seed Co Operating Margin % Historical Data

The historical data trend for Seed Co'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.

Seed Co Operating Margin % Chart

Seed Co Annual Data
Trend Mar09 Mar11 Mar12 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial 24.33 50.09 48.96 1.51 -2.14

Seed Co Semi-Annual Data
Mar09 Mar11 Sep11 Mar12 Sep12 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 -16.07 8.89 -27.79 56.60 0.55

Competitive Comparison of Seed Co's Operating Margin %

For the Agricultural Inputs subindustry, Seed Co'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.


Seed Co's Operating Margin % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Seed Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Seed Co's Operating Margin % falls into.



Seed Co 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.

Seed Co's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=-913.327 / 42653.218
=-2.14 %

Seed Co's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=330 / 59710
=0.55 %

* 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.


Seed Co  (XZIM:SEED.ZW) 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.


Seed Co Operating Margin % Related Terms

Thank you for viewing the detailed overview of Seed Co's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Seed Co (XZIM:SEED.ZW) Business Description

Traded in Other Exchanges
N/A
Address
Shamwari Road, Stapleford, Westgate, P.O. Box WGT 64, Harare, ZWE
Seed Co Ltd is engaged in the business of processing agricultural seeds. The company is involved in the breeding, multiplication, and distribution of mainly hybrid seed varieties for crops such as maize, wheat, soya beans, sugar beans, cowpeas, sorghum, groundnuts, and vegetables. It generates maximum revenue from the maize crop.

Seed Co (XZIM:SEED.ZW) Headlines

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