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Chugai Pharmaceutical Co (Chugai Pharmaceutical Co) Operating Margin % : 42.15% (As of Mar. 2024)


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What is Chugai Pharmaceutical Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Chugai Pharmaceutical Co's Operating Income for the three months ended in Mar. 2024 was $667 Mil. Chugai Pharmaceutical Co's Revenue for the three months ended in Mar. 2024 was $1,582 Mil. Therefore, Chugai Pharmaceutical Co's Operating Margin % for the quarter that ended in Mar. 2024 was 42.15%.

Good Sign:

Chugai Pharmaceutical Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

CHGCY' s Operating Margin % Range Over the Past 10 Years
Min: 15.63   Med: 26.07   Max: 42.54
Current: 42.54


CHGCY's Operating Margin % is ranked better than
98.33% of 1020 companies
in the Drug Manufacturers industry
Industry Median: 6.385 vs CHGCY: 42.54

Chugai Pharmaceutical Co's 5-Year Average Operating Margin % Growth Rate was 12.50% per year.

Chugai Pharmaceutical Co's Operating Income for the three months ended in Mar. 2024 was $667 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $3,029 Mil.


Chugai Pharmaceutical Co Operating Margin % Historical Data

The historical data trend for Chugai Pharmaceutical Co'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.

Chugai Pharmaceutical Co Operating Margin % Chart

Chugai Pharmaceutical Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.69 38.28 42.20 42.34 39.52

Chugai Pharmaceutical Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 31.48 42.11 41.37 44.40 42.15

Competitive Comparison of Chugai Pharmaceutical Co's Operating Margin %

For the Drug Manufacturers - General subindustry, Chugai Pharmaceutical Co'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.


Chugai Pharmaceutical Co's Operating Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Chugai Pharmaceutical Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Chugai Pharmaceutical Co's Operating Margin % falls into.



Chugai Pharmaceutical Co 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.

Chugai Pharmaceutical Co's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=3050.211 / 7718.818
=39.52 %

Chugai Pharmaceutical Co's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=666.626 / 1581.573
=42.15 %

* 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.


Chugai Pharmaceutical Co  (OTCPK:CHGCY) 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.


Chugai Pharmaceutical Co Operating Margin % Related Terms

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Chugai Pharmaceutical Co (Chugai Pharmaceutical Co) Business Description

Traded in Other Exchanges
Address
1-1 Nihonbashi-Muromachi 2-Chome, Nihonbashi Mitsui Tower (Reception15F), Chuo-ku, Tokyo, JPN, 103-8324
Chugai Pharmaceutical is a Japanese drug developer and subsidiary of Roche Holding Ltd, which owns roughly 60% of the company. Founded in 1925, Chugai deals primarily in the Japanese market, where it generates roughly half of its revenue. It has been the leader in Japan's oncology market for the past decade, largely due to drugs licensed from its parent's portfolio. The company also develops its own innovative medicines. It is an industry leader in antibody technology with several flagship therapies, including Hemlibra for hemophilia A patients and tocilizumab for treating rheumatoid arthritis and COVID-19.

Chugai Pharmaceutical Co (Chugai Pharmaceutical Co) Headlines