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Victrex Operating Margin %

: 37.61% (As of Mar. 2019)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Victrex's Operating Income for the six months ended in Mar. 2019 was £54.8 Mil. Victrex's Revenue for the six months ended in Mar. 2019 was £145.7 Mil. Therefore, Victrex's Operating Margin % for the quarter that ended in Mar. 2019 was 37.61%.

Warning Sign:

Victrex PLC operating margin has been in 5-year decline. The average rate of decline per year is -1.5%.

LSE:VCT' s Operating Margin % Range Over the Past 10 Years
Min: 24.17   Max: 43.47
Current: 38.91

24.17
43.47

LSE:VCT's Operating Margin % is ranked higher than
98% of the 1182 Companies
in the Chemicals industry.

( Industry Median: 7.46 vs. LSE:VCT: 38.91 )

Victrex's 5-Year Average operating margin Growth Rate was -1.50% per year.

Victrex's Operating Income for the six months ended in Mar. 2019 was £54.8 Mil. Its operating income for the trailing twelve months (TTM) ended in Mar. 2019 was £126.9 Mil.


Victrex Operating Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Victrex Annual Data
Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40.46 40.34 39.95 38.97 38.93

Victrex Semi-Annual Data
Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19
Operating Margin % 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 Premium Member Only Premium Member Only Premium Member Only 38.27 39.55 37.82 40.09 37.61

Competitive Comparison
* 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.


Victrex Operating Margin % Distribution

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



Victrex 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.

Victrex's Operating Margin for the fiscal year that ended in Sep. 2018 is calculated as

Operating Margin %=Operating Income (A: Sep. 2018 ) / Revenue (A: Sep. 2018 )
=126.9 / 326
=38.93 %

Victrex's Operating Margin for the quarter that ended in Mar. 2019 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2019 ) / Revenue (Q: Mar. 2019 )
=54.8 / 145.7
=37.61 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Victrex  (LSE:VCT) 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

Compared with a company's EBITDA margin, 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 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.


Victrex Operating Margin % Related Terms


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