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DAVIDsTEA (DAVIDsTEA) Operating Margin % : -27.11% (As of Oct. 2022)


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What is DAVIDsTEA Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. DAVIDsTEA's Operating Income for the three months ended in Oct. 2022 was $-3.20 Mil. DAVIDsTEA's Revenue for the three months ended in Oct. 2022 was $11.82 Mil. Therefore, DAVIDsTEA's Operating Margin % for the quarter that ended in Oct. 2022 was -27.11%.

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


DTEAF's Operating Margin % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 4.85
* Ranked among companies with meaningful Operating Margin % only.

DAVIDsTEA's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

DAVIDsTEA's Operating Income for the three months ended in Oct. 2022 was $-3.20 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2022 was $-7.20 Mil.


DAVIDsTEA Operating Margin % Historical Data

The historical data trend for DAVIDsTEA'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.

DAVIDsTEA Operating Margin % Chart

DAVIDsTEA Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.28 -8.41 -4.56 4.79 0.27

DAVIDsTEA Quarterly Data
Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22
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 -7.32 3.56 -9.02 -31.17 -27.11

Competitive Comparison of DAVIDsTEA's Operating Margin %

For the Packaged Foods subindustry, DAVIDsTEA'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.


DAVIDsTEA's Operating Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, DAVIDsTEA's Operating Margin % distribution charts can be found below:

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



DAVIDsTEA 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.

DAVIDsTEA's Operating Margin % for the fiscal year that ended in Jan. 2022 is calculated as

Operating Margin %=Operating Income (A: Jan. 2022 ) / Revenue (A: Jan. 2022 )
=0.221 / 82.454
=0.27 %

DAVIDsTEA's Operating Margin % for the quarter that ended in Oct. 2022 is calculated as

Operating Margin %=Operating Income (Q: Oct. 2022 ) / Revenue (Q: Oct. 2022 )
=-3.203 / 11.817
=-27.11 %

* 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.


DAVIDsTEA  (OTCPK:DTEAF) 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.


DAVIDsTEA Operating Margin % Related Terms

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DAVIDsTEA (DAVIDsTEA) Business Description

Traded in Other Exchanges
N/A
Address
5430 Ferrier Street, Mount-Royal, QC, CAN, H4P 1M2
DAVIDsTEA Inc is a company functional in Canada's packaged foods market. Operating as a branded retailer of different types of tea, the company serves through DAVIDsTEA stores and its website, davidstea.com. Its business involves the sale of three main products; Tea, Tea Accessories and Food and Beverages. Tea products such as loose-leaf teas, pre-packaged teas, and tea sachets account for the majority of the company's sales. The Company has two operating segments, Canada, and the U.S; that derive their revenues from various distribution channels including online, retail and wholesale. The Company derives revenue from Tea, Tea accessories and Food and beverages products. Majority revenue is derived from Tea products.

DAVIDsTEA (DAVIDsTEA) Headlines

From GuruFocus

DAVIDsTEA Takes Steps to Optimize Store Network

By GlobeNewswire GlobeNewswire 07-09-2020

DAVIDsTEA Comments on Trading Activity

By Marketwired Marketwired 09-21-2018

Frank Zitella to Join DAVIDsTEA as Chief Financial Officer

By GlobeNewswire GlobeNewswire 11-21-2018

DAVIDsTEA Announces Discontinuance of Highland Lawsuit

By Marketwired Marketwired 10-25-2018

DAVIDsTEA Announces Board Resignation

By Marketwired Marketwired 07-27-2018