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DADA (Dada Nexus) Operating Margin % : -8.17% (As of Dec. 2024)


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What is Dada Nexus Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Dada Nexus's Operating Income for the three months ended in Dec. 2024 was $-27 Mil. Dada Nexus's Revenue for the three months ended in Dec. 2024 was $334 Mil. Therefore, Dada Nexus's Operating Margin % for the quarter that ended in Dec. 2024 was -8.17%.

Good Sign:

Dada Nexus Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

DADA' s Operating Margin % Range Over the Past 10 Years
Min: -130.28   Med: -34.15   Max: -10.95
Current: -11.39


DADA's Operating Margin % is ranked worse than
89.2% of 1120 companies
in the Retail - Cyclical industry
Industry Median: 3.67 vs DADA: -11.39

Dada Nexus's 5-Year Average Operating Margin % Growth Rate was 28.20% per year.

Dada Nexus's Operating Income for the three months ended in Dec. 2024 was $-27 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was $-153 Mil.


Dada Nexus Operating Margin % Historical Data

The historical data trend for Dada Nexus'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.

Dada Nexus Operating Margin % Chart

Dada Nexus Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Margin %
Get a 7-Day Free Trial -30.73 -37.56 -22.63 -10.95 -11.39

Dada Nexus Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -12.98 -14.88 -13.21 -9.33 -8.17

Competitive Comparison of Dada Nexus's Operating Margin %

For the Internet Retail subindustry, Dada Nexus'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.


Dada Nexus's Operating Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Dada Nexus's Operating Margin % distribution charts can be found below:

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


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Dada Nexus 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.

Dada Nexus's Operating Margin % for the fiscal year that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=-151.19 / 1327.315
=-11.39 %

Dada Nexus's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=-27.283 / 334.127
=-8.17 %

* 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.


Dada Nexus  (NAS:DADA) 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.


Dada Nexus Operating Margin % Related Terms

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Dada Nexus Business Description

Traded in Other Exchanges
Address
No. 1088 Yangshupu Road, 22nd Floor, Oriental Fisherman’s Wharf, Yangpu District, Shanghai, CHN, 200082
Dada Nexus provides on-demand retail platform services and fulfillment services to retailers to sell their products, and online advertising and marketing services to its customers such as brand owners or their agents. It also provides last-mile, intracity and intercity delivery services to logistics companies, merchants and individuals on the Dada Now platform. The group fulfills the delivery needs of retailers on JD Now and customers on Dada Now mostly by utilizing registered riders on Dada Now. Dada's average delivery time for on-demand intracity delivery orders was within 30 minutes in 2023, faster than traditional e-commerce where delivery can take days. As of Sept. 16, 2024, JD.com owned 63.2% of Dada Nexus. Dada Nexus competes with Meituan, Ele.me, Douyin, and SF Intra-city.