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CA (CA) Operating Margin % : 19.11% (As of Sep. 2018)


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What is CA Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. CA's Operating Income for the three months ended in Sep. 2018 was $171 Mil. CA's Revenue for the three months ended in Sep. 2018 was $895 Mil. Therefore, CA's Operating Margin % for the quarter that ended in Sep. 2018 was 19.11%.

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


CA's Operating Margin % is not ranked *
in the Software industry.
Industry Median: 3.12
* Ranked among companies with meaningful Operating Margin % only.

CA's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

CA's Operating Income for the three months ended in Sep. 2018 was $171 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2018 was $959 Mil.


CA Operating Margin % Historical Data

The historical data trend for CA'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.

CA Operating Margin % Chart

CA Annual Data
Trend Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.90 27.80 28.50 28.59 27.11

CA Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 28.14 27.81 25.76 21.86 19.11

Competitive Comparison of CA's Operating Margin %

For the Software - Infrastructure subindustry, CA'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.


CA's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, CA's Operating Margin % distribution charts can be found below:

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



CA 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.

CA's Operating Margin % for the fiscal year that ended in Mar. 2018 is calculated as

Operating Margin %=Operating Income (A: Mar. 2018 ) / Revenue (A: Mar. 2018 )
=1148 / 4235
=27.11 %

CA's Operating Margin % for the quarter that ended in Sep. 2018 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2018 ) / Revenue (Q: Sep. 2018 )
=171 / 895
=19.11 %

* 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.


CA  (NAS:CA) 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.


CA Operating Margin % Related Terms

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


CA (CA) Business Description

Industry
Traded in Other Exchanges
N/A
Address
CA Technologies develops and sells software and services through three business segments: mainframe solutions, enterprise solutions, and services. Mainframe solutions helps customers lower the cost of mainframe management and maintenance; enterprise solutions helps customers manage and service nonmainframe IT platforms; and the services business helps customers with implementation, training, and deployment. The mainframe solutions segment contributes over 50% of the firm's revenue and the majority of its profits.
Executives
Arthur F Weinbach director 1981 MARCUS AVENUE, LAKE SUCCESS NY 11042
Jeffrey G Katz director 520 MADISON AVENUE NEW YORK NY 10022
Lauren Patricia Flaherty officer: EVP, Chief Marketing Officer 520 MADISON AVENUE, NEW YORK NY 10022
Raymond J Bromark director 520 MADISON AVENUE, NEW YORK NY 10022
Jacob Lamm officer: EVP, STRATEGY & CORPORATE DEV 520 MADISON AVENUE, NEW YORK NY 10022
Christopher B Lofgren director 520 MADISON AVENUE, NEW YORK NY 10022
Michael P Gregoire director, officer: Chief Executive Officer C/O CA, INC., ONE CA PLAZA, ISLANDIA NY 11749
Rohit Kapoor director C/O EXLSERVICE HOLDINGS, INC., 320 PARK AVENUE 29TH FL, NEW YORK NY 10022
Laura S Unger director 520 MADISON AVENUE, NEW YORK NY 10022
Kieran J Mcgrath officer: EVP and CFO 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Jean M. Hobby director 10000 WEHRLE DRIVE, CLARENCE NY 14031
Richard Sulpizio director 520 MADISON AVENUE, NEW YORK NY 10022
Anthony J. Radesca officer: SVP, Chief Accounting Officer 520 MADISON AVENUE, NEW YORK NY 10022
Nancy A. Altobello director 520 MADISON AVENUE, NEW YORK NY 10022
Ava Hahn officer: EVP GC, Corp Sec & CECO 4650 CUSHING PARKWAY, C/O LAM RESEARCH, FREMONT CA 94538

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