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Dechra Pharmaceuticals (LSE:DPH) Operating Margin % : -9.97% (As of Jun. 2023)


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What is Dechra Pharmaceuticals Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Dechra Pharmaceuticals's Operating Income for the six months ended in Jun. 2023 was £-38.3 Mil. Dechra Pharmaceuticals's Revenue for the six months ended in Jun. 2023 was £384.1 Mil. Therefore, Dechra Pharmaceuticals's Operating Margin % for the quarter that ended in Jun. 2023 was -9.97%.

Warning Sign:

Dechra Pharmaceuticals PLC operating margin has been in a 5-year decline. The average rate of decline per year is -26.9%.

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

LSE:DPH' s Operating Margin % Range Over the Past 10 Years
Min: 0.83   Med: 11.08   Max: 14.31
Current: 0.83


LSE:DPH's Operating Margin % is not ranked
in the Drug Manufacturers industry.
Industry Median: 6.385 vs LSE:DPH: 0.83

Dechra Pharmaceuticals's 5-Year Average Operating Margin % Growth Rate was -26.90% per year.

Dechra Pharmaceuticals's Operating Income for the six months ended in Jun. 2023 was £-38.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was £6.3 Mil.


Dechra Pharmaceuticals Operating Margin % Historical Data

The historical data trend for Dechra Pharmaceuticals'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.

Dechra Pharmaceuticals Operating Margin % Chart

Dechra Pharmaceuticals Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.44 11.40 14.31 14.01 0.83

Dechra Pharmaceuticals Semi-Annual Data
Dec13 Jun14 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 Premium Member Only 2.01 17.27 10.90 11.82 -9.97

Competitive Comparison of Dechra Pharmaceuticals's Operating Margin %

For the Drug Manufacturers - General subindustry, Dechra Pharmaceuticals'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.


Dechra Pharmaceuticals's Operating Margin % Distribution in the Drug Manufacturers Industry

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

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



Dechra Pharmaceuticals 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.

Dechra Pharmaceuticals's Operating Margin % for the fiscal year that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=6.3 / 761.5
=0.83 %

Dechra Pharmaceuticals'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 )
=-38.3 / 384.1
=-9.97 %

* 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.


Dechra Pharmaceuticals  (LSE:DPH) 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.


Dechra Pharmaceuticals Operating Margin % Related Terms

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Dechra Pharmaceuticals (LSE:DPH) Business Description

Traded in Other Exchanges
Address
24 Cheshire Avenue, Cheshire Business Park, Lostock Gralam, Northwich, GBR, CW9 7UA
Dechra Pharmaceuticals PLC is a major drug manufacturing company with a focus on veterinary pharmaceutical products. The company develops, manufactures, and markets its products exclusively for veterinarians globally. Dechra is structured along three segments, including being European Pharmaceuticals, North American Pharmaceuticals, and Pharmaceuticals Research and Development. The vast majority of Dechra's revenue is generated in Europe, followed by the U.S. Dechra derives most of its revenue through its Companion Animal Product category, followed by food-producing animal products.

Dechra Pharmaceuticals (LSE:DPH) Headlines

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