Switch to:

CDK Global Operating Margin %

: -14.66% (As of Jun. 2019)
View and export this data going back to 2014. Start your Free Trial

Operating Margin % is calculated as Operating Income divided by its Revenue. CDK Global's Operating Income for the three months ended in Jun. 2019 was USD -25 Mil. CDK Global's Revenue for the three months ended in Jun. 2019 was USD 168 Mil. Therefore, CDK Global's Operating Margin % for the quarter that ended in Jun. 2019 was -14.66%.

Good Sign:

CDK Global Inc operating margin is expanding. Margin expansion is usually a good sign.

NAS:CDK' s Operating Margin % Range Over the Past 10 Years
Min: 14.35   Max: 27.94
Current: 25.08

14.35
27.94

NAS:CDK's Operating Margin % is ranked higher than
91% of the 2346 Companies
in the Application Software industry.

( Industry Median: 4.33 vs. NAS:CDK: 25.08 )

CDK Global's 5-Year Average operating margin Growth Rate was 9.50% per year.

CDK Global's Operating Income for the three months ended in Jun. 2019 was USD -25 Mil. Its operating income for the trailing twelve months (TTM) ended in Jun. 2019 was USD 480 Mil.

Warning Sign:

CDK Global Inc had operating loss over the past 3 years.


CDK Global 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.

CDK Global Annual Data
Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.41 19.99 23.07 27.94 25.08

CDK Global Quarterly Data
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
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 52.55 31.49 26.73 28.65 -14.66

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.


CDK Global Operating Margin % Distribution

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



CDK Global 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.

CDK Global's Operating Margin for the fiscal year that ended in Jun. 2019 is calculated as

Operating Margin %=Operating Income (A: Jun. 2019 ) / Revenue (A: Jun. 2019 )
=480.3 / 1914.8
=25.08 %

CDK Global's Operating Margin for the quarter that ended in Jun. 2019 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2019 ) / Revenue (Q: Jun. 2019 )
=-24.6 / 167.8
=-14.66 %

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


CDK Global  (NAS:CDK) 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.


CDK Global Operating Margin % Related Terms


CDK Global Operating Margin % Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)