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Hill-Rom Holdings (Hill-Rom Holdings) Operating Margin % : 15.21% (As of Sep. 2021)


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What is Hill-Rom Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Hill-Rom Holdings's Operating Income for the three months ended in Sep. 2021 was $121 Mil. Hill-Rom Holdings's Revenue for the three months ended in Sep. 2021 was $798 Mil. Therefore, Hill-Rom Holdings's Operating Margin % for the quarter that ended in Sep. 2021 was 15.21%.

Good Sign:

Hill-Rom Holdings Inc operating margin is expanding. Margin expansion is usually a good sign.

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

HRC' s Operating Margin % Range Over the Past 10 Years
Min: 6.25   Med: 11.55   Max: 14.83
Current: 14.83


HRC's Operating Margin % is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 1.28 vs HRC: 14.83

Hill-Rom Holdings's 5-Year Average Operating Margin % Growth Rate was 7.30% per year.

Hill-Rom Holdings's Operating Income for the three months ended in Sep. 2021 was $121 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2021 was $448 Mil.


Hill-Rom Holdings Operating Margin % Historical Data

The historical data trend for Hill-Rom 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.

Hill-Rom Holdings Operating Margin % Chart

Hill-Rom Holdings Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.39 12.89 11.85 14.20 14.83

Hill-Rom Holdings Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 11.57 14.78 15.93 13.28 15.21

Competitive Comparison of Hill-Rom Holdings's Operating Margin %

For the Medical Instruments & Supplies subindustry, Hill-Rom 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.


Hill-Rom Holdings's Operating Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Hill-Rom Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Hill-Rom Holdings's Operating Margin % falls into.



Hill-Rom 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.

Hill-Rom Holdings's Operating Margin % for the fiscal year that ended in Sep. 2021 is calculated as

Operating Margin %=Operating Income (A: Sep. 2021 ) / Revenue (A: Sep. 2021 )
=447.6 / 3018.7
=14.83 %

Hill-Rom Holdings's Operating Margin % for the quarter that ended in Sep. 2021 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2021 ) / Revenue (Q: Sep. 2021 )
=121.4 / 797.9
=15.21 %

* 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.


Hill-Rom Holdings  (NYSE:HRC) 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.


Hill-Rom Holdings Operating Margin % Related Terms

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


Hill-Rom Holdings (Hill-Rom Holdings) Business Description

Traded in Other Exchanges
N/A
Address
130 East Randolph Street, Suite 1000, Chicago, IL, USA, 60601
Hill-Rom Holdings Inc is a global provider of hospital equipment and medical supplies, including hospital beds for high- and low-acuity settings. Hill-Rom reports financial data across three operating segments: patient support systems (50% of fiscal 2018 sales), front-line care (34%), and surgical solutions (16%). The firm has significant operations internationally, with roughly 30% of revenue derived from international sources and the remaining 70% from its U.S. business.
Executives
Mary Kay Ladone officer: SVP, Corp. Dev., Strat. & IR 130 EAST RANDOLPH STREET, SUITE 1000, CHICAGO IL 60601
Deborah Rasin officer: SVP, Chief Legal Officer TWO PRUDENTIAL PLAZA, SUITE 4100, CHICAGO IL 60601
Paul Sherwood Johnson officer: SVP & Pres. - PSS Acute Care TWO PRUDENTIAL PLAZA 180 NORTH STETSON AVENUE, SUITE 4100 CHICAGO IL 60601
Andreas G Frank officer: SVP, Pres. Front Line Care C/O DENTSPLY SIRONA INC, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Richard M Wagner officer: Corporate Controller 221 WEST PHILADELPHIA STREET, SUITE 60W, YORK PA 17401-2991
Amy M. Dodrill officer: President - Surgical Solutions 130 EAST RANDOLPH STREET, SUITE 1000, CHICAGO IL 60601
Gary Lee Ellis director THE TORO COMPANY, 8111 LYNDALE AVENUE SOUTH, BLOOMINGTON MN 55420
Mary Garrett director ETHAN ALLEN DRIVE, DANBURY CT 06811
Gregory J. Moore director 130 EAST RANDOLPH STREET, SUITE 1000, CHICAGO IL 60601
William Kucheman director C/O DAN DUGAN, FINANCIAL PERSPECTIVES, 3025 HARBOR LN., SUITE 200, PLYMOUTH MN 55447
James R Giertz director
Ronald A Malone director 3 HUNTINGTON QUADRANGLE, SUITE 200S, MELVILLE NY 11747
Felicia F Norwood director 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
William G Dempsey director C/O LANDAUER, INC., 2 SCIENCE ROAD, GLENWOOD IL 60425
Nancy M Schlichting director 200 WILMOT ROAD, DEERFIELD IL 60015