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Ipsen (IPSEY) Operating Margin % : 15.77% (As of Dec. 2023)


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What is Ipsen Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Ipsen's Operating Income for the six months ended in Dec. 2023 was $289 Mil. Ipsen's Revenue for the six months ended in Dec. 2023 was $1,836 Mil. Therefore, Ipsen's Operating Margin % for the quarter that ended in Dec. 2023 was 15.77%.

Warning Sign:

Ipsen SA operating margin has been in a 5-year decline. The average rate of decline per year is -2.6%.

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

IPSEY' s Operating Margin % Range Over the Past 10 Years
Min: 17.85   Med: 22.3   Max: 31.05
Current: 17.85


IPSEY's Operating Margin % is ranked better than
80.37% of 1019 companies
in the Drug Manufacturers industry
Industry Median: 6.1 vs IPSEY: 17.85

Ipsen's 5-Year Average Operating Margin % Growth Rate was -2.60% per year.

Ipsen's Operating Income for the six months ended in Dec. 2023 was $289 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $641 Mil.


Ipsen Operating Margin % Historical Data

The historical data trend for Ipsen'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.

Ipsen Operating Margin % Chart

Ipsen 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 24.62 26.96 31.05 27.60 17.85

Ipsen Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 30.89 33.70 22.10 20.02 15.77

Competitive Comparison of Ipsen's Operating Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Ipsen'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.


Ipsen's Operating Margin % Distribution in the Drug Manufacturers Industry

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

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



Ipsen 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.

Ipsen'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 )
=643.73 / 3605.671
=17.85 %

Ipsen'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 )
=289.422 / 1835.66
=15.77 %

* 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.


Ipsen  (OTCPK:IPSEY) 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.


Ipsen Operating Margin % Related Terms

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


Ipsen (IPSEY) Business Description

Traded in Other Exchanges
Address
65 Quai Georges Gorse, Billancourt Cedex, Boulogne, FRA, 92100
Ipsen is a global biotechnology company headquartered in France that develops and commercializes medicines across three therapeutic areas: oncology, neuroscience, and rare diseases. Ipsen was founded in 1929 as a consumer healthcare company focused on prescription-based products for digestive disorders and neurological disorders. Over the past nearly 100 years, Ipsen has shifted its focus to specialty care, which comprises the vast majority of its total revenue. In February 2022, Ipsen announced the divestment of its consumer healthcare business, which accounted for 8% of 2021 revenue. Ipsen has a large global footprint and sells more than 25 drugs in 115 countries.