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Eco Animal Health Group (LSE:EAH) Operating Margin % : -1.54% (As of Sep. 2023)


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What is Eco Animal Health Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Eco Animal Health Group's Operating Income for the six months ended in Sep. 2023 was £-0.58 Mil. Eco Animal Health Group's Revenue for the six months ended in Sep. 2023 was £38.01 Mil. Therefore, Eco Animal Health Group's Operating Margin % for the quarter that ended in Sep. 2023 was -1.54%.

Warning Sign:

Eco Animal Health Group PLC operating margin has been in a 5-year decline. The average rate of decline per year is -23.4%.

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

LSE:EAH' s Operating Margin % Range Over the Past 10 Years
Min: 1.45   Med: 14.14   Max: 20.57
Current: 1.45


LSE:EAH's Operating Margin % is ranked worse than
63.49% of 1019 companies
in the Drug Manufacturers industry
Industry Median: 6.34 vs LSE:EAH: 1.45

Eco Animal Health Group's 5-Year Average Operating Margin % Growth Rate was -23.40% per year.

Eco Animal Health Group's Operating Income for the six months ended in Sep. 2023 was £-0.58 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was £1.28 Mil.


Eco Animal Health Group Operating Margin % Historical Data

The historical data trend for Eco Animal Health Group'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.

Eco Animal Health Group Operating Margin % Chart

Eco Animal Health Group Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.96 8.37 18.11 4.29 5.80

Eco Animal Health Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 6.04 2.74 8.84 3.69 -1.54

Competitive Comparison of Eco Animal Health Group's Operating Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Eco Animal Health Group'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.


Eco Animal Health Group's Operating Margin % Distribution in the Drug Manufacturers Industry

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

* The bar in red indicates where Eco Animal Health Group's Operating Margin % falls into.



Eco Animal Health Group 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.

Eco Animal Health Group's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=4.947 / 85.311
=5.80 %

Eco Animal Health Group's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=-0.584 / 38.009
=-1.54 %

* 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.


Eco Animal Health Group  (LSE:EAH) 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.


Eco Animal Health Group Operating Margin % Related Terms

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Eco Animal Health Group (LSE:EAH) Business Description

Traded in Other Exchanges
N/A
Address
78 Coombe Road, New Malden, London, Surrey, GBR, KT3 4QS
Eco Animal Health Group PLC is engaged in the manufacture and marketing of animal health products. The company's product portfolio includes Aivlosin - macrolide antibiotic for the treatment of respiratory and enteric diseases in pigs and poultry; Ecomectin, Eco heart, Ecotraz, and Ecomintic for treatment and prevention of parasites in cattle, sheep, pigs, horses, and dogs; and Chlortetracycline and Oxytetracycline for treatment of bacterial infections in pigs, poultry and cattle. The geographical segments of the company include Corporate/UK, China & Japan, North America, South & South East Asia, Latin America, Europe, and the Rest of the World.

Eco Animal Health Group (LSE:EAH) Headlines

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