Operating Margin % is calculated as Operating Income divided by its Revenue. BlackRock's Operating Income for the
three
months ended in Dec. 2023 was $1,644 Mil. BlackRock's Revenue for the
three
months ended in Dec. 2023 was $4,631 Mil. Therefore, BlackRock's Operating Margin % for the quarter that ended in Dec. 2023 was 35.50%.
Warning Sign:
BlackRock Inc operating margin has been in a 5-year decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for BlackRock's Operating Margin % or its related term are showing as below:
BLK'
s Operating Margin % Range Over the Past 10 Years
Min: 35.14 Med: 38.32 Max: 40.91
Current: 35.89
BLK's Operating Margin % is ranked better than 71.18% of 635
companies
in the Asset Management industry
Industry Median: 13.61
vs BLK: 35.89
BlackRock's 5-Year Average Operating Margin % Growth Rate was -1.50% per year.
BlackRock's Operating Income for the
three
months ended in Dec. 2023 was $1,644 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $6,584 Mil.
BlackRock Operating Margin % Historical Data
The historical data trend for BlackRock'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.
Competitive Comparison of BlackRock's Operating Margin %
For the Asset Management subindustry, BlackRock'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.
BlackRock's Operating Margin % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, BlackRock's Operating Margin % distribution charts can be found below:
* The bar in red indicates where BlackRock's Operating Margin % falls into.
BlackRock 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.
BlackRock's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
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 Nokias 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.
BlackRock Operating Margin % Related Terms
Thank you for viewing the detailed overview of BlackRock's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
BlackRock is the largest asset manager in the world, with $9.101 trillion in AUM at the end of September 2023. Product mix is fairly diverse, with 52% of the firm's managed assets in equity strategies, 28% in fixed income, 9% in multi-asset class, 8% in money market funds, and 3% in alternatives. Passive strategies account for around two thirds of long-term AUM, with the company's ETF platform maintaining a leading market share domestically and on a global basis. Product distribution is weighted more toward institutional clients, which by our calculations account for around 80% of AUM. BlackRock is also geographically diverse, with clients in more than 100 countries and more than one third of managed assets coming from investors domiciled outside the U.S. and Canada.
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