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Dimed Distribuidora de Medicamentos (BSP:PNVL4) Operating Margin %

: 3.72% (As of Jun. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Dimed Distribuidora de Medicamentos's Operating Income for the three months ended in Jun. 2023 was R$40 Mil. Dimed Distribuidora de Medicamentos's Revenue for the three months ended in Jun. 2023 was R$1,081 Mil. Therefore, Dimed Distribuidora de Medicamentos's Operating Margin % for the quarter that ended in Jun. 2023 was 3.72%.

Warning Sign:

Dimed SA Distribuidora de Medicamentos operating margin has been in a 5-year decline. The average rate of decline per year is -6.6%.

The historical rank and industry rank for Dimed Distribuidora de Medicamentos's Operating Margin % or its related term are showing as below:

BSP:PNVL4' s Operating Margin % Range Over the Past 10 Years
Min: 3.19   Med: 4.41   Max: 51.98
Current: 3.52


BSP:PNVL4's Operating Margin % is ranked worse than
56.22% of 1053 companies
in the Drug Manufacturers industry
Industry Median: 5.79 vs BSP:PNVL4: 3.52

Dimed Distribuidora de Medicamentos's 5-Year Average Operating Margin % Growth Rate was -6.60% per year.

Dimed Distribuidora de Medicamentos's Operating Income for the three months ended in Jun. 2023 was R$40 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was R$148 Mil.


Dimed Distribuidora de Medicamentos Operating Margin % Historical Data

The historical data trend for Dimed Distribuidora de Medicamentos'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.

Dimed Distribuidora de Medicamentos Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.55 4.67 3.34 3.19 3.45

Dimed Distribuidora de Medicamentos Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
Operating Margin % 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 Premium Member Only Premium Member Only Premium Member Only 4.14 3.37 3.28 3.72 3.72

Competitive Comparison

For the Drug Manufacturers - General subindustry, Dimed Distribuidora de Medicamentos'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.

   

Dimed Distribuidora de Medicamentos Operating Margin % Distribution

For the Drug Manufacturers industry and Healthcare sector, Dimed Distribuidora de Medicamentos's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Dimed Distribuidora de Medicamentos's Operating Margin % falls in comparison to its industry or sector. The grey bar indicates the Operating Margin %'s extreme value range as defined by GuruFocus.



Dimed Distribuidora de Medicamentos 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.

Dimed Distribuidora de Medicamentos'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 )
=137.725 / 3990.475
=3.45 %

Dimed Distribuidora de Medicamentos's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=40.209 / 1081.375
=3.72 %

* 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.


Dimed Distribuidora de Medicamentos  (BSP:PNVL4) 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.


Dimed Distribuidora de Medicamentos Operating Margin % Related Terms

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


Dimed Distribuidora de Medicamentos (BSP:PNVL4) Business Description

Dimed Distribuidora de Medicamentos logo
Traded in Other Exchanges
Address
Avenida Industrial Belgraf, 865, Eldorado do Sul, RS, BRA, 92990-000
Dimed SA Distribuidora de Medicamentos is engaged in the sale of medicines, perfumery, personal care and beauty products, cosmetics and dermocosmetics. Its segments are divided into Retail, Wholesale and Corporate. The Retail segment has 556 stores that sell more than 15,000 items among drugs and personal care and beauty products. The Wholesale segment is the distributor of drugs in Brazil. The Corporate segment includes Wholesale and Retail, as well as the subsidiary Lifar. In addition to adding divisions of cosmetics, drugs and food, Lifar is responsible for the production of brands in Brazil, as well as products of its own brand Panvel.

Dimed Distribuidora de Medicamentos (BSP:PNVL4) Headlines

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