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Aristocrat Leisure (Aristocrat Leisure) Operating Margin % : 20.74% (As of Sep. 2023)


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What is Aristocrat Leisure Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Aristocrat Leisure's Operating Income for the six months ended in Sep. 2023 was $429 Mil. Aristocrat Leisure's Revenue for the six months ended in Sep. 2023 was $2,066 Mil. Therefore, Aristocrat Leisure's Operating Margin % for the quarter that ended in Sep. 2023 was 20.74%.

Good Sign:

Aristocrat Leisure Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

ARLUF' s Operating Margin % Range Over the Past 10 Years
Min: 4.03   Med: 16.67   Max: 23.41
Current: 20.94


ARLUF's Operating Margin % is ranked better than
81.3% of 818 companies
in the Travel & Leisure industry
Industry Median: 8.225 vs ARLUF: 20.94

Aristocrat Leisure's 5-Year Average Operating Margin % Growth Rate was 9.20% per year.

Aristocrat Leisure's Operating Income for the six months ended in Sep. 2023 was $429 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $864 Mil.


Aristocrat Leisure Operating Margin % Historical Data

The historical data trend for Aristocrat Leisure'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.

Aristocrat Leisure Operating Margin % Chart

Aristocrat Leisure Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.00 4.03 16.33 19.62 20.94

Aristocrat Leisure Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.47 21.32 17.98 21.15 20.74

Competitive Comparison of Aristocrat Leisure's Operating Margin %

For the Gambling subindustry, Aristocrat Leisure'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.


Aristocrat Leisure's Operating Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Aristocrat Leisure's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Aristocrat Leisure's Operating Margin % falls into.



Aristocrat Leisure 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.

Aristocrat Leisure's Operating Margin % for the fiscal year that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=847.301 / 4046.08
=20.94 %

Aristocrat Leisure'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 )
=428.535 / 2066.388
=20.74 %

* 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.


Aristocrat Leisure  (OTCPK:ARLUF) 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.


Aristocrat Leisure Operating Margin % Related Terms

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Aristocrat Leisure (Aristocrat Leisure) Business Description

Traded in Other Exchanges
Address
85 Epping Road, Building A, Pinnacle Office Park, North Ryde, Sydney, NSW, AUS, 2113
Aristocrat Leisure is an electronic gaming machine manufacturer, selling machines to pubs, clubs, and casinos. The firm is licensed in all Australian states and territories, North American jurisdictions, and essentially every major country. Aristocrat is one of the top three largest players in the space along with International Game Technology and Scientific Games. Through acquisitions of Plarium and more recently Big Fish, Aristocrat now derives a significant proportion of earnings from the faster growing mobile gaming business.