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Yue Yuen Industrial (Holdings) (HKSE:00551) Operating Margin % : 9.86% (As of Dec. 2023)


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What is Yue Yuen Industrial (Holdings) Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Yue Yuen Industrial (Holdings)'s Operating Income for the three months ended in Dec. 2023 was HK$1,467 Mil. Yue Yuen Industrial (Holdings)'s Revenue for the three months ended in Dec. 2023 was HK$14,866 Mil. Therefore, Yue Yuen Industrial (Holdings)'s Operating Margin % for the quarter that ended in Dec. 2023 was 9.86%.

The historical rank and industry rank for Yue Yuen Industrial (Holdings)'s Operating Margin % or its related term are showing as below:

HKSE:00551' s Operating Margin % Range Over the Past 10 Years
Min: 2.68   Med: 6.26   Max: 8.45
Current: 7.43


HKSE:00551's Operating Margin % is ranked better than
67.21% of 1046 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 3.785 vs HKSE:00551: 7.43

Yue Yuen Industrial (Holdings)'s 5-Year Average Operating Margin % Growth Rate was -0.70% per year.

Yue Yuen Industrial (Holdings)'s Operating Income for the three months ended in Dec. 2023 was HK$1,467 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was HK$2,171 Mil.


Yue Yuen Industrial (Holdings) Operating Margin % Historical Data

The historical data trend for Yue Yuen Industrial (Holdings)'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.

Yue Yuen Industrial (Holdings) Operating Margin % Chart

Yue Yuen Industrial (Holdings) 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 6.76 2.68 3.15 6.23 6.28

Yue Yuen Industrial (Holdings) Quarterly Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Sep22 Dec22 Jun23 Sep23 Dec23
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 7.90 6.04 - 4.91 9.86

Competitive Comparison of Yue Yuen Industrial (Holdings)'s Operating Margin %

For the Footwear & Accessories subindustry, Yue Yuen Industrial (Holdings)'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.


Yue Yuen Industrial (Holdings)'s Operating Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Yue Yuen Industrial (Holdings)'s Operating Margin % distribution charts can be found below:

* The bar in red indicates where Yue Yuen Industrial (Holdings)'s Operating Margin % falls into.



Yue Yuen Industrial (Holdings) 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.

Yue Yuen Industrial (Holdings)'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 )
=3871.911 / 61620.634
=6.28 %

Yue Yuen Industrial (Holdings)'s Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=1466.548 / 14866.321
=9.86 %

* 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.


Yue Yuen Industrial (Holdings)  (HKSE:00551) 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.


Yue Yuen Industrial (Holdings) Operating Margin % Related Terms

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Yue Yuen Industrial (Holdings) (HKSE:00551) Business Description

Traded in Other Exchanges
Address
108 Wai Yip Street, 22nd Floor, C-Bons International Center, Kwun Tong, Kowloon, Hong Kong, HKG
Yue Yuen Industrial (Holdings) Ltd is engaged in footwear businesses. The company operates in two reportable segments: Manufacturing Business and Retailing Business. Manufacturing Business contributes the majority of the revenue. Its products include athletic shoes, casual shoes, outdoor shoes, sports sandals, soles, components, and Apparel wholesale. The company operates in the United States, China, Europe, Asia, and Others.

Yue Yuen Industrial (Holdings) (HKSE:00551) Headlines

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