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Directa Plus (LSE:DCTA) Operating Margin % : -40.81% (As of Jun. 2023)


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What is Directa Plus Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Directa Plus's Operating Income for the six months ended in Jun. 2023 was £-1.61 Mil. Directa Plus's Revenue for the six months ended in Jun. 2023 was £3.94 Mil. Therefore, Directa Plus's Operating Margin % for the quarter that ended in Jun. 2023 was -40.81%.

Good Sign:

Directa Plus PLC operating margin is expanding. Margin expansion is usually a good sign.

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

LSE:DCTA' s Operating Margin % Range Over the Past 10 Years
Min: -1566.67   Med: -203.03   Max: -41
Current: -48.74


LSE:DCTA's Operating Margin % is ranked worse than
95.04% of 1531 companies
in the Chemicals industry
Industry Median: 6.14 vs LSE:DCTA: -48.74

Directa Plus's 5-Year Average Operating Margin % Growth Rate was 36.30% per year.

Directa Plus's Operating Income for the six months ended in Jun. 2023 was £-1.61 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was £-4.19 Mil.

Warning Sign:

Directa Plus PLC has never been profitable in the past 3 years. It lost money every year.


Directa Plus Operating Margin % Historical Data

The historical data trend for Directa Plus'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.

Directa Plus Operating Margin % Chart

Directa Plus Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -173.78 -135.10 -68.61 -41.00 -46.20

Directa Plus Semi-Annual Data
Dec13 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
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 -30.79 -49.62 -37.22 -55.46 -40.81

Competitive Comparison of Directa Plus's Operating Margin %

For the Specialty Chemicals subindustry, Directa Plus'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.


Directa Plus's Operating Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Directa Plus's Operating Margin % distribution charts can be found below:

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



Directa Plus 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.

Directa Plus's Operating Margin % for the fiscal year that ended in Dec. 2022 is calculated as

Operating Margin %=Operating Income (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=-4.362 / 9.442
=-46.20 %

Directa Plus's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=-1.608 / 3.94
=-40.81 %

* 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.


Directa Plus  (LSE:DCTA) 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.


Directa Plus Operating Margin % Related Terms

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Directa Plus (LSE:DCTA) Business Description

Traded in Other Exchanges
Address
ComoNExT Science Park, Via Cavour 2, Lomazzo, ITA, 22074
Directa Plus PLC is a technology company engaged in the development of manufacturing processes to produce and supply high-quality engineered graphene-based products that can be used for industrial and commercial markets. The product range of the company includes G+ products and operates through the Textile; Environmental; and Others segments.

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