1.49(2.02%) Volume: 184,249 11:08PM EST| Market Cap : 1.13 B | Enterprise Value : 1.09 B | P/E (TTM) : 4.13 | P/B : 1.63 |
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Operating Margin % is calculated as Operating Income divided by its Revenue. Arch Coal's Operating Income for the three months ended in Sep. 2019 was $73 Mil. Arch Coal's Revenue for the three months ended in Sep. 2019 was $619 Mil. Therefore, Arch Coal's Operating Margin % for the quarter that ended in Sep. 2019 was 11.75%.
Arch Coal's 5-Year Average operating margin Growth Rate was 0.00% per year.
Arch Coal's Operating Income for the three months ended in Sep. 2019 was $73 Mil. Its operating income for the trailing twelve months (TTM) ended in Sep. 2019 was $276 Mil.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
| Arch Coal Quarterly Data | ||||||||||||||||||||
| Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | |
| Operating Margin % |
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14.74 | 11.29 | 11.49 | 11.49 | 11.75 |
* The bar in red indicates where Arch Coal's Operating Margin % falls into.
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.
Arch Coal's Operating Margin for the fiscal year that ended in Dec. 2018 is calculated as
| Operating Margin % | = | Operating Income (A: Dec. 2018 ) | / | Revenue (A: Dec. 2018 ) |
| = | 288.256 | / | 2451.787 | |
| = | 11.76 % |
Arch Coal's Operating Margin for the quarter that ended in Sep. 2019 is calculated as
| Operating Margin % | = | Operating Income (Q: Sep. 2019 ) | / | Revenue (Q: Sep. 2019 ) |
| = | 72.765 | / | 619.467 | |
| = | 11.75 % |
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
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.
Compared with a company's EBITDA margin, 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 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.
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