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Diamond Hill Investment Group (Diamond Hill Investment Group) Operating Margin % : 13.05% (As of Dec. 2023)


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What is Diamond Hill Investment Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Diamond Hill Investment Group's Operating Income for the three months ended in Dec. 2023 was $4.4 Mil. Diamond Hill Investment Group's Revenue for the three months ended in Dec. 2023 was $33.8 Mil. Therefore, Diamond Hill Investment Group's Operating Margin % for the quarter that ended in Dec. 2023 was 13.05%.

Warning Sign:

Diamond Hill Investment Group Inc operating margin has been in a 5-year decline. The average rate of decline per year is -6.9%.

The historical rank and industry rank for Diamond Hill Investment Group's Operating Margin % or its related term are showing as below:

DHIL' s Operating Margin % Range Over the Past 10 Years
Min: 25.97   Med: 43.63   Max: 48.93
Current: 25.97


DHIL's Operating Margin % is ranked better than
62.82% of 632 companies
in the Asset Management industry
Industry Median: 14.44 vs DHIL: 25.97

Diamond Hill Investment Group's 5-Year Average Operating Margin % Growth Rate was -6.90% per year.

Diamond Hill Investment Group's Operating Income for the three months ended in Dec. 2023 was $4.4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $35.5 Mil.


Diamond Hill Investment Group Operating Margin % Historical Data

The historical data trend for Diamond Hill Investment Group'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.

Diamond Hill Investment Group Operating Margin % Chart

Diamond Hill Investment Group 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 35.09 36.03 41.86 41.64 25.97

Diamond Hill Investment Group 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 25.67 32.19 23.35 34.77 13.05

Competitive Comparison of Diamond Hill Investment Group's Operating Margin %

For the Asset Management subindustry, Diamond Hill Investment Group'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.


Diamond Hill Investment Group's Operating Margin % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Diamond Hill Investment Group's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Diamond Hill Investment Group's Operating Margin % falls into.



Diamond Hill Investment Group 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.

Diamond Hill Investment Group'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 )
=35.504 / 136.716
=25.97 %

Diamond Hill Investment Group'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 )
=4.415 / 33.821
=13.05 %

* 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.


Diamond Hill Investment Group  (NAS:DHIL) 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.


Diamond Hill Investment Group Operating Margin % Related Terms

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


Diamond Hill Investment Group (Diamond Hill Investment Group) Business Description

Traded in Other Exchanges
Address
325 John H. McConnell Boulevard, Suite 200, Columbus, OH, USA, 43215
Diamond Hill Investment Group Inc sponsors, markets, and provides investment advisory and related services to various U.S. and foreign clients including mutual funds, separate accounts, and private investment funds. The company's objective is to fulfill a fiduciary duty to clients and secondary objectives to achieve an adequate long-term return for shareholders. The company generates its revenue from Investment advisory and Mutual fund administration fees.
Executives
Laird James F Jr officer: Chief Financial Officer 375 N FRONT STREET, SUITE 300, COLUMBUS OH 43215
Heather E Brilliant director, officer: Chief Executive Officer 325 JOHN H MCCONNELL BLVD, SUITE 200, COLUMBUS OH 43215
Paula R Meyer director ADVISORY HEDGED OPPORTUNITY FUND, 50590 AXP FINANCIAL CENTER, MINNEAPOLIS MN 55474
Jo Ann Quinif officer: President of DHCM 325 JOHN H. MCCONNELL BLVD., SUITE 200, COLUMBUS OH 43215
Mark Zinkula director 325 JOHN H MCCONNELL BLVD, SUITE 200, COLUMBUS OH 43215
Thomas Edward Line officer: Chief Financial Officer 325 JOHN H. MCCONNELL BLVD., SUITE 200, COLUMBUS OH 43215
L'quentus Thomas director 325 JOHN H MCCONNELL BLVD, SUITE 200, COLUMBUS OH 43215
Richard Scott Cooley director 325 JOHN H MCCONNELL BLVD, SUITE 200, COLUMBUS OH 43215
Randolph J. Fortener director 325 JOHN H. MCCONNELL BLVD., STE. 200, COLUMBUS OH 43215
St. Pierre Nicole Renee director 325 JOHN H. MCCONNELL BLVD., SUITE 200, COLUMBUS OH 43215
Dillon Roderick H Jr director, officer: Chief Executive Officer 180 BEACH DRIVE NE 2001, SAINT PETERSBURG FL 33701
Lisa M Wesolek officer: COO of DHCM 325 JOHN H. MCCONNELL BLVD., STE 200, COLUMBUS OH 43215
Bradley C Shoup director 325 JOHN H. MCCONNELL BLVD., SUITE 200, COLUMBUS OH 43215
Frances A Skinner director 138 PUTNAM STREET, MARIETTA OH 45750
Christopher M Bingaman officer: President of DHCM 325 JOHN H. MCCONNELL BLVD., STE. 200, COLUMBUS OH 43215