Operating Margin % is calculated as Operating Income divided by its Revenue. Life Storage's Operating Income for the
three
months ended in Mar. 2023 was $114 Mil. Life Storage's Revenue for the
three
months ended in Mar. 2023 was $261 Mil. Therefore, Life Storage's Operating Margin % for the quarter that ended in Mar. 2023 was 43.74%.
Good Sign:
Life Storage Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Life Storage's Operating Margin % or its related term are showing as below:
LSI'
s Operating Margin % Range Over the Past 10 Years
Min: 35.31 Med: 41.22 Max: 46.35
Current: 46.25
LSI's Operating Margin % is not ranked
in the REITs industry.
Industry Median: 51.83
vs LSI: 46.25
Life Storage's 5-Year Average Operating Margin % Growth Rate was 4.10% per year.
Life Storage's Operating Income for the
three
months ended in Mar. 2023 was $114 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2023 was $476 Mil.
Life Storage Operating Margin % Historical Data
The historical data trend for Life Storage'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.
Competitive Comparison of Life Storage's Operating Margin %
For the REIT - Industrial subindustry, Life Storage'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.
Life Storage's Operating Margin % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Life Storage's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Life Storage's Operating Margin % falls into.
Life Storage 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.
Life Storage's Operating Margin % for the fiscal year that ended in Dec. 2022 is calculated as
* 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.
Life Storage (NYSE:LSI) 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 Nokias 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.
Life Storage Operating Margin % Related Terms
Thank you for viewing the detailed overview of Life Storage's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Life Storage Inc (which was rebranded from Sovran Self Storage, Inc in 2016) is a fully integrated, real estate investment trust that acquires and manages self-storage properties throughout the United States. The company operates under the brand names Life Storage. Approximately under half of the company's revenue is derived from stores in the states of Texas and Florida. The remainder of sales is distributed across the United States. The company's operations in rental income from customers renting storage space on a month-to-month basis generate a majority of operating revenue. The company also offers storage to both individuals of commercial renters and has special storage units available for vehicles and wine.
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