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Operating Margin % is calculated as Operating Income divided by its Revenue. Magellan Health's Operating Income for the three months ended in Sep. 2021 was $8 Mil. Magellan Health's Revenue for the three months ended in Sep. 2021 was $1,254 Mil. Therefore, Magellan Health's Operating Margin % for the quarter that ended in Sep. 2021 was 0.66%.
Warning Sign:
Magellan Health Inc operating margin has been in 5-year decline. The average rate of decline per year is -25.6%.
The historical rank and industry rank for Magellan Health's Operating Margin % or its related term are showing as below:
Magellan Health's 5-Year Average Operating Margin % Growth Rate was -25.60% per year.
Magellan Health's Operating Income for the three months ended in Sep. 2021 was $8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2021 was $27 Mil.
The historical data trend for Magellan Health'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.
Magellan Health Annual Data | |||||||||||||||||||||
Trend | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | |||||||||||
Operating Margin % | Get a 7-Day Free Trial | 3.16 | 2.66 | 1.29 | 1.11 | 0.45 |
Magellan Health Quarterly Data | ||||||||||||||||||||
Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | |
Operating Margin % | Get a 7-Day Free Trial | 0.33 | -1.90 | 3.24 | 0.28 | 0.66 |
For the Healthcare Plans subindustry, Magellan Health'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.
For the Healthcare Plans industry and Healthcare sector, Magellan Health's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Magellan Health's Operating Margin % falls into.
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.
Magellan Health's Operating Margin % for the fiscal year that ended in Dec. 2020 is calculated as
Operating Margin % | = | Operating Income (A: Dec. 2020 ) | / | Revenue (A: Dec. 2020 ) |
= | 20.404 | / | 4577.531 | |
= | 0.45 % |
Magellan Health's Operating Margin % for the quarter that ended in Sep. 2021 is calculated as
Operating Margin % | = | Operating Income (Q: Sep. 2021 ) | / | Revenue (Q: Sep. 2021 ) |
= | 8.331 | / | 1254.118 | |
= | 0.66 % |
* 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.
Magellan Health (NAS:MGLN) 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 Nokias 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.
Thank you for viewing the detailed overview of Magellan Health's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mostafa Kamal | officer: CEO, Magellan Rx Management | 15950 NORTH 76TH STREET, #200 SCOTTSDALE AZ 85260 |
Jeffrey N West | officer: SVP & Controller | 6950 COLUMBIA GATEWAY DR STE 400 COLUMBIA MD 21046 |
David Bourdon | officer: Chief Financial Officer | 6303 COWBOYS WAY, SUITE 350, FRISCO TX 75034 |
Peter A Feld | director | 201 E LAS OLAS BOULEVARD, SUITE 1000, FORT LAUDERDALE FL 33301 |
Swati Bargotra Abbott | director | 4800 NORTH SCOTTSDALE ROAD, SUITE 4400, SCOTTSDALE AZ 85251 |
Steven J Shulman | director | 1564 NE EXPRESSWAY, ATTN: BJ PURCELL, ATLANTA GA 30329 |
Guy P Sansone | director | C/O MEDNAX, 1301 CONCORD TERRACE, SUNRISE FL 33323 |
Gregory Scott Mackenzie | director | NDC PLAZA ATLANTA GA 30329 |
Leslie V Norwalk | director | C/O 3661 VALLEY CENTRE DRIVE SUITE 200, SAN DIEGO CA 92130 |
Christopher J Chen | director | 4801 EAST WASHINGTON STREET PHOENIX AZ 85034 |
Mural R Josephson | director | |
James E Murray | officer: President and COO | 500 WEST MAIN STREET, LOUISVILLE KY 40202 |
Clapper Caskie Lewis | officer: Chief Human Resources Officer | 55 NOD ROAD AVON CT 06001 |
Kenneth J Fasola | director, officer: Chief Executive Officer | 500 WEST MAIN STREET, LOUISVILLE KY 40202 |
Jonathan N Rubin | officer: Chief Financial Officer | 55 NOD ROAD AVON CT 06001 |
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