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LexinFintech Holdings (NAS:LX) Operating Margin %

: 7.93% (As of Mar. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. LexinFintech Holdings's Operating Income for the three months ended in Mar. 2023 was $34 Mil. LexinFintech Holdings's Revenue for the three months ended in Mar. 2023 was $433 Mil. Therefore, LexinFintech Holdings's Operating Margin % for the quarter that ended in Mar. 2023 was 7.93%.

Warning Sign:

LexinFintech Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -13.2%.

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

LX' s Operating Margin % Range Over the Past 10 Years
Min: -15.74   Med: 10.42   Max: 26.98
Current: 6.55


LX's Operating Margin % is ranked worse than
62.57% of 374 companies
in the Credit Services industry
Industry Median: 17.92 vs LX: 6.55

LexinFintech Holdings's 5-Year Average Operating Margin % Growth Rate was -13.20% per year.

LexinFintech Holdings's Operating Income for the three months ended in Mar. 2023 was $34 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2023 was $106 Mil.


LexinFintech Holdings Operating Margin % Historical Data

The historical data trend for LexinFintech Holdings'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.

LexinFintech Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only 23.98 24.78 12.31 26.98 3.39

LexinFintech Holdings Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 -9.88 -4.63 8.47 12.71 7.93

Competitive Comparison

For the Credit Services subindustry, LexinFintech Holdings'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.

   

LexinFintech Holdings Operating Margin % Distribution

For the Credit Services industry and Financial Services sector, LexinFintech Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where LexinFintech Holdings's Operating Margin % falls in comparison to its industry or sector. The grey bar indicates the Operating Margin %'s extreme value range as defined by GuruFocus.



LexinFintech Holdings 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.

LexinFintech Holdings'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 )
=47.972 / 1415.123
=3.39 %

LexinFintech Holdings's Operating Margin % for the quarter that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2023 ) / Revenue (Q: Mar. 2023 )
=34.347 / 432.875
=7.93 %

* 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.


LexinFintech Holdings  (NAS:LX) 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.


LexinFintech Holdings Operating Margin % Related Terms

Thank you for viewing the detailed overview of LexinFintech Holdings's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


LexinFintech Holdings (NAS:LX) Business Description

LexinFintech Holdings logo
Traded in Other Exchanges
Address
No. 3099 Keyuan South Road, 27th Floor, China Energy Storage Tower, Nanshan District, Shenzhen, CHN, 518057
LexinFintech Holdings Ltd is an online consumer finance platform and a technology-driven service provider in China. The group is engaged primarily in online direct sales services and online consumer financial services for its customers in China. It offers online direct sales with installment payment terms and offers installment purchase loans and personal installment loans mainly through its retail and online consumer finance platform www.fenqile.com, and its mobile application to young adults between the age of 18 and 36 in the People's Republic of China. The company also finances the loans with proceeds from partnering peer-to-peer lending platforms, commercial banks, and other financial institutions. Geographically, it derives revenue from China.

LexinFintech Holdings (NAS:LX) Headlines

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