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GreenSky (GreenSky) Operating Margin % : 32.43% (As of Dec. 2021)


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What is GreenSky Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. GreenSky's Operating Income for the three months ended in Dec. 2021 was $41.6 Mil. GreenSky's Revenue for the three months ended in Dec. 2021 was $128.2 Mil. Therefore, GreenSky's Operating Margin % for the quarter that ended in Dec. 2021 was 32.43%.

Warning Sign:

GreenSky Inc operating margin has been in 5-year decline. The average rate of decline per year is -17.1%.

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

GSKY' s Operating Margin % Range Over the Past 10 Years
Min: 10   Med: 37.06   Max: 53.68
Current: 33.38


GSKY's Operating Margin % is not ranked
in the Software industry.
Industry Median: 3.28 vs GSKY: 33.38

GreenSky's 5-Year Average Operating Margin % Growth Rate was -17.10% per year.

GreenSky's Operating Income for the three months ended in Dec. 2021 was $41.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2021 was $172.9 Mil.


GreenSky Operating Margin % Historical Data

The historical data trend for GreenSky'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.

GreenSky Operating Margin % Chart

GreenSky Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Operating Margin %
Get a 7-Day Free Trial 44.68 37.06 22.20 10.00 33.38

GreenSky Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21
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 24.41 15.75 41.90 42.47 32.43

Competitive Comparison of GreenSky's Operating Margin %

For the Software - Infrastructure subindustry, GreenSky'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.


GreenSky's Operating Margin % Distribution in the Software Industry

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

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



GreenSky 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.

GreenSky's Operating Margin % for the fiscal year that ended in Dec. 2021 is calculated as

Operating Margin %=Operating Income (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=172.937 / 518.074
=33.38 %

GreenSky's Operating Margin % for the quarter that ended in Dec. 2021 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2021 ) / Revenue (Q: Dec. 2021 )
=41.587 / 128.235
=32.43 %

* 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.


GreenSky  (NAS:GSKY) 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.


GreenSky Operating Margin % Related Terms

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


GreenSky (GreenSky) Business Description

Traded in Other Exchanges
N/A
Address
5565 Glenridge Connector, Suite 700, Atlanta, GA, USA, 30342
GreenSky Inc operates as a technology company. The company offers a proprietary technology infrastructure platform to supports the full transaction lifecycle, including credit application, underwriting, and real-time allocation. Its platform caters to merchants, consumers, and banks.
Executives
Gerald R. Benjamin director, officer: Chief Administrative Officer 5565 GLENRIDGE CONNECTOR, SUITE 700 ATLANTA GA 30342
Gregg Steven Freishtat director 5860 WINTERTHUR DRIVE ATLANTA GA 30328
Angela M Nagy officer: SVP, Chief Accounting Officer 1155 PERIMETER CENTER WEST ATLANTA GA 30338
Joel M. Babbit director 3120 BRECKINRIDGE BLVD., DULUTH GA 30099
Dennis I Kelly officer: President, Patient Solutions 10720 SIKES PL STE 300 CHARLOTTE NC 28277
David Zalik director, 10 percent owner, officer: CEO and Chairman of the Board 5565 GLENRIDGE CONNECTOR, SUITE 700 ATLANTA GA 30342
Robert Sheft director, 10 percent owner 623 FIFTH AVENUE, 26TH FLOOR, NEW YORK NY 10022
Goldstein Kevin officer: EVP - Chief Credit Officer 5565 GLENRIDGE CONNECTOR SUITE 700 ATLANTA 2Q 30342
Andrew Kang officer: EVP and CFO 5565 GLENRIDGE CONNECTOR, SUITE 700, ATLANTA GA 30342
Arthur J Bacci director
Tpg Growth Ii Advisors, Inc. other: Former 10% Owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
James G Coulter other: Former 10% Owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
David Bonderman other: Former 10% Owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Lois Elizabeth Rickard officer: Chief Human Resources Officer 1230 PEACHTREE ST NE, SUITE 1000, ATLANTA GA 30309
Steven E Fox officer: EVP - Chief Legal Officer 229 PEACHTREE ST NE, 2700 INTERNATIONAL TOWER, ATLANTA GA 303031603