Operating Margin % is calculated as Operating Income divided by its Revenue. Demandware's Operating Income for the
three
months ended in Mar. 2016 was $-11.6 Mil. Demandware's Revenue for the
three
months ended in Mar. 2016 was $67.1 Mil. Therefore, Demandware's Operating Margin % for the quarter that ended in Mar. 2016 was -17.29%.
The historical rank and industry rank for Demandware's Operating Margin % or its related term are showing as below:
DWRE's Operating Margin % is not ranked *
in the Software industry.
Industry Median: 3.28 * Ranked among companies with meaningful Operating Margin % only.
Demandware's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Demandware's Operating Income for the
three
months ended in Mar. 2016 was $-11.6 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2016 was $-43.1 Mil.
Demandware Operating Margin % Historical Data
The historical data trend for Demandware'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 Demandware's Operating Margin %
For the Software - Application subindustry, Demandware'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.
Demandware's Operating Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Demandware's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Demandware's Operating Margin % falls into.
Demandware 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.
Demandware's Operating Margin % for the fiscal year that ended in Dec. 2015 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.
Demandware Operating Margin % Related Terms
Thank you for viewing the detailed overview of Demandware's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Demandware Inc was incorporated in Delaware in February 2004 as SSE Holding, Inc. and changed its name to Demandware, Inc. in August 2004. The Company provides enterprise-class cloud-based digital commerce solutions for retailers and branded manufacturers. Its platform, Demandware Commerce, enables customers to establish and execute complex digital commerce strategies that include expansion, multi-brand rollouts and omni-channel operations. It enable companies to easily design, implement and manage their own customized digital commerce sites, including websites, mobile applications, in-store solutions and other digital storefronts. Through its scalable, secure, and open Demandware Commerce platform, its customers create seamless brand experiences to reach their consumers across all digital touch points globally. The Company's cloud infrastructure increases processing capacity of its customers' digital commerce sites to meet surges in demand, minimize page load times and maximize uptime. Its cloud platform also offers the high reliability and security required by customers to implement their digital commerce strategies, and the Company has achieved 99.99% average platform availability since 2005. The Company has built an ecosystem of trusted partners called Demandware LINK that complements and optimizes Demandware Commerce. Demandware LINK is comprised of technology, solution and end-to end partners. Its geographical areas of operations include, United States, Germany and United Kingdom. The Company's customers include adidas, Barneys New York, Bestseller, Brooks Brothers, Carter's, Deckers, Guthy-Renker, House of Fraser, Jewelry Television, Kate Spade, Lands' End, L'Oreal, mothercare, s.Oliver, and Tory Burch. The Company competes with IBM, Oracle/ATG, eBay/Magento, Digital River, eBay/GSI Commerce, MarketLive and Venda. Its solutions are subject to export controls, including the Commerce Department's Export Administration Regulations and various economic and trade sanctions regulations established by the Treasury Department's Office of Foreign Assets Controls, and exports of its solutions must be made in compliance with these laws.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
DWRE has been successfully added to your 