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Ras Al Khaimah Co for White Cementnstruction Materials (ADX:RAKWCT) Operating Margin % : 3.06% (As of Sep. 2023)


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What is Ras Al Khaimah Co for White Cementnstruction Materials Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Ras Al Khaimah Co for White Cementnstruction Materials's Operating Income for the three months ended in Sep. 2023 was د.إ1.8 Mil. Ras Al Khaimah Co for White Cementnstruction Materials's Revenue for the three months ended in Sep. 2023 was د.إ58.8 Mil. Therefore, Ras Al Khaimah Co for White Cementnstruction Materials's Operating Margin % for the quarter that ended in Sep. 2023 was 3.06%.

Warning Sign:

Ras Al Khaimah Co for White Cement & Construction Materials operating margin has been in a 5-year decline. The average rate of decline per year is -8.8%.

The historical rank and industry rank for Ras Al Khaimah Co for White Cementnstruction Materials's Operating Margin % or its related term are showing as below:

ADX:RAKWCT' s Operating Margin % Range Over the Past 10 Years
Min: 3.69   Med: 6.44   Max: 11.84
Current: 3.69


ADX:RAKWCT's Operating Margin % is ranked worse than
66.67% of 384 companies
in the Building Materials industry
Industry Median: 7.925 vs ADX:RAKWCT: 3.69

Ras Al Khaimah Co for White Cementnstruction Materials's 5-Year Average Operating Margin % Growth Rate was -8.80% per year.

Ras Al Khaimah Co for White Cementnstruction Materials's Operating Income for the three months ended in Sep. 2023 was د.إ1.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was د.إ9.3 Mil.


Ras Al Khaimah Co for White Cementnstruction Materials Operating Margin % Historical Data

The historical data trend for Ras Al Khaimah Co for White Cementnstruction Materials'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.

Ras Al Khaimah Co for White Cementnstruction Materials Operating Margin % Chart

Ras Al Khaimah Co for White Cementnstruction Materials Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.07 5.74 6.75 6.12 5.34

Ras Al Khaimah Co for White Cementnstruction Materials Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.64 9.22 0.75 1.66 3.06

Competitive Comparison of Ras Al Khaimah Co for White Cementnstruction Materials's Operating Margin %

For the Building Materials subindustry, Ras Al Khaimah Co for White Cementnstruction Materials'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.


Ras Al Khaimah Co for White Cementnstruction Materials's Operating Margin % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Ras Al Khaimah Co for White Cementnstruction Materials's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Ras Al Khaimah Co for White Cementnstruction Materials's Operating Margin % falls into.



Ras Al Khaimah Co for White Cementnstruction Materials 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.

Ras Al Khaimah Co for White Cementnstruction Materials's Operating Margin % for the fiscal year that ended in Dec. 2022 is calculated as

Operating Margin %=Operating Income (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=13.236 / 247.668
=5.34 %

Ras Al Khaimah Co for White Cementnstruction Materials'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 )
=1.8 / 58.804
=3.06 %

* 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.


Ras Al Khaimah Co for White Cementnstruction Materials  (ADX:RAKWCT) 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.


Ras Al Khaimah Co for White Cementnstruction Materials Operating Margin % Related Terms

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


Ras Al Khaimah Co for White Cementnstruction Materials (ADX:RAKWCT) Business Description

Traded in Other Exchanges
N/A
Address
P.O. Box 1492, Ras Al Khaimah, ARE
Ras Al Khaimah Co for White Cement & Construction Materials is engaged in the production of cement, building materials, and lime. The principal activities of the company are to manufacture and supply white cement, lime, and cement products. The company operates through two business segments which include Manufacturing and Investments. The manufacturing segment refers to the manufacture and distribution of white cement. The investment segment consists of investments in marketable equity securities and deposits with banks.

Ras Al Khaimah Co for White Cementnstruction Materials (ADX:RAKWCT) Headlines

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