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Alphatec Holdings (Alphatec Holdings) Operating Margin % : -25.39% (As of Dec. 2023)


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What is Alphatec Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Alphatec Holdings's Operating Income for the three months ended in Dec. 2023 was $-35.0 Mil. Alphatec Holdings's Revenue for the three months ended in Dec. 2023 was $138.0 Mil. Therefore, Alphatec Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was -25.39%.

Warning Sign:

Alphatec Holdings Inc operating margin has been in a 5-year decline. The average rate of decline per year is -6.2%.

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

ATEC' s Operating Margin % Range Over the Past 10 Years
Min: -44.76   Med: -26.28   Max: 0.96
Current: -30.75


ATEC's Operating Margin % is ranked worse than
66.5% of 815 companies
in the Medical Devices & Instruments industry
Industry Median: 1.28 vs ATEC: -30.75

Alphatec Holdings's 5-Year Average Operating Margin % Growth Rate was -6.20% per year.

Alphatec Holdings's Operating Income for the three months ended in Dec. 2023 was $-35.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-148.3 Mil.

Warning Sign:

Alphatec Holdings Inc has never been profitable in the past 3 years. It lost money every year.


Alphatec Holdings Operating Margin % Historical Data

The historical data trend for Alphatec 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.

Alphatec Holdings Operating Margin % Chart

Alphatec Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -34.09 -31.82 -44.76 -34.52 -30.75

Alphatec Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -26.06 -33.89 -35.09 -29.80 -25.39

Competitive Comparison of Alphatec Holdings's Operating Margin %

For the Medical Devices subindustry, Alphatec 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.


Alphatec Holdings's Operating Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Alphatec Holdings's Operating Margin % distribution charts can be found below:

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



Alphatec 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.

Alphatec Holdings's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=-148.276 / 482.262
=-30.75 %

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

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-35.037 / 137.97
=-25.39 %

* 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.


Alphatec Holdings  (NAS:ATEC) 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.


Alphatec Holdings Operating Margin % Related Terms

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


Alphatec Holdings (Alphatec Holdings) Business Description

Traded in Other Exchanges
Address
1950 Camino Vida Roble, Carlsbad, CA, USA, 92008
Alphatec Holdings Inc is a medical technology company focused on the design, development, and advancement of products for the surgical treatment of spinal disorders associated with disease and degeneration, congenital deformities, and trauma. The company's spine approach technologies include Posterior Cervical Fusion, Anterior Cervical Discectomy and Fusion, Lateral Interbody Fusion, and Posterior Lumbar Interbody Fusion among others.
Executives
David Sponsel officer: EVP, Sales C/O ALPHATEC SPINE, INC., 5818 EL CAMINO REAL, CARLSBAD CA 92008
David M Demski director C/O GLOBUS MEDICAL, INC., 2560 GENERAL ARMISTEAD AVENUE, AUDUBON PA 19403
Patrick Miles director, officer: Executive Chairman 7475 LUSK BLVD., SAN DIEGO CA 92121
Tullis James L L director, 10 percent owner 100 FIRST STAMFORD PLACE, STAMFORD CT 06907
David H Mowry director 9775 TOLEDO, IRVINE CA 92618
Evan Bakst director 225 CENTRAL PARK WEST, APT. 1605, NEW YORK NY 10024
Jennifer N. Pritzker 10 percent owner C/O SQUADRON CAPITAL LLC, 104 S. MICHIGAN AVENUE, SUITE 500, CHICAGO IL 60603
Tyson Eliot Marshall officer: GENERAL COUNSEL & CORP. SEC. 10680 TREENA STREET, SUITE 500, SAN DIEGO CA 92131
Craig E Hunsaker officer: See Remarks C/O ALPHATEC HOLDINGS, INC., 5818 EL CAMINO REAL, CARLSBAD CA 92008
Elizabeth Ann Altman director 10070 BARNES CANYON ROAD, SAN DIEGO CA 92121
Paul Segal 10 percent owner 1700 BROADWAY, 35TH FLOOR, NEW YORK NY 10019
L-5 Healthcare Partners, Llc 10 percent owner, other: Director by deputization 1700 BROADWAY, 35TH FLOOR, NEW YORK NY 10019
John Todd Koning officer: Chief Financial Officer C/O MASIMO CORPORATION, 52 DISCOVERY, IRVINE CA 92618
David R Pelizzon director, 10 percent owner 2850 FRONTIER DR, WARSAW IN 46582
Scott Lish officer: SVP, Development C/O ALPHATEC SPINE, INC., 5818 EL CAMINO REAL, CARLSBAD CA 92008

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