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Surgical Care Affiliates (Surgical Care Affiliates) Operating Margin % : 24.50% (As of Dec. 2016)


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What is Surgical Care Affiliates Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Surgical Care Affiliates's Operating Income for the three months ended in Dec. 2016 was $93 Mil. Surgical Care Affiliates's Revenue for the three months ended in Dec. 2016 was $379 Mil. Therefore, Surgical Care Affiliates's Operating Margin % for the quarter that ended in Dec. 2016 was 24.50%.

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


SCAI's Operating Margin % is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 3.87
* Ranked among companies with meaningful Operating Margin % only.

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

Surgical Care Affiliates's Operating Income for the three months ended in Dec. 2016 was $93 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2016 was $247 Mil.


Surgical Care Affiliates Operating Margin % Historical Data

The historical data trend for Surgical Care Affiliates'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.

Surgical Care Affiliates Operating Margin % Chart

Surgical Care Affiliates Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Operating Margin %
Get a 7-Day Free Trial 19.87 20.22 23.23 23.27 19.31

Surgical Care Affiliates Quarterly Data
Dec11 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
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 24.93 15.64 18.37 17.26 24.50

Competitive Comparison of Surgical Care Affiliates's Operating Margin %

For the Medical Care Facilities subindustry, Surgical Care Affiliates'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.


Surgical Care Affiliates's Operating Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Surgical Care Affiliates's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Surgical Care Affiliates's Operating Margin % falls into.



Surgical Care Affiliates 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.

Surgical Care Affiliates's Operating Margin % for the fiscal year that ended in Dec. 2016 is calculated as

Operating Margin %=Operating Income (A: Dec. 2016 ) / Revenue (A: Dec. 2016 )
=247.382 / 1281.405
=19.31 %

Surgical Care Affiliates's Operating Margin % for the quarter that ended in Dec. 2016 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2016 ) / Revenue (Q: Dec. 2016 )
=92.837 / 379
=24.50 %

* 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.


Surgical Care Affiliates  (NAS:SCAI) 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.


Surgical Care Affiliates Operating Margin % Related Terms

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Surgical Care Affiliates (Surgical Care Affiliates) Business Description

Traded in Other Exchanges
N/A
Address
Surgical Care Affiliates Inc was incorporated on March 23, 2007. It is a provider of solutions to physicians, health plans and health systems to optimize surgical care. It operates surgical facilities in the United States, which includes 185 ambulatory surgery centers ("ASCs") and seven surgical hospitals. Its business model is focused on building strategic relationships with physicians, health plans and health systems to invest in, develop and optimize facilities in an aligned economic model that enables access to high-quality care at lower cost. It owns and operates facilities in partnership with 45 health systems and approximately 2,800 physician partners. It has six operating segments, which are aggregated into one reportable segment. Its six operating segments are generally organized geographically. Its operations consist of ownership and management of ASCs and surgical hospitals. Its affiliated facilities provide the space, equipment and medical support staff necessary for physicians to perform non-emergency surgical procedures. Its typical ASC is a freestanding facility with fully-equipped operating and procedure rooms and ancillary areas for reception, preparation, recovery and administration. Its surgical hospitals provide medical services similar to those provided by ASCs and can also accommodate more complex procedures, some of which require patients to stay overnight. It faces competition from other providers of ambulatory surgical care in developing ASC and surgical hospital joint ventures, acquiring existing facilities, attracting patients and negotiating commercial health plan contract pricing. It is subject to various federal, state and local laws and regulations relating to the protection of the environment and human health and safety, including those governing the management and disposal of hazardous substances and wastes, the cleanup of contaminated sites and the maintenance of a safe workplace.
Executives
Kenneth R Goulet director C/O SHARECARE, INC., 255 EAST PACES FERRY ROAD NE, SUITE 700, ATLANTA GA 30305
Sharad Mansukani director C/O AGILON HEALTH, INC., 6210 E HWY 290, SUITE 450, AUSTIN TX 78723
Joseph T Clark officer: Chief Development Officer C/O SURGICAL CARE AFFILIATES, INC., 520 LAKE COOK ROAD, SUITE 250, DEERFIELD IL 60015
Michael A. Rucker officer: Chief Operating Officer C/O SURGICAL CARE AFFILIATES, INC., 520 LAKE COOK ROAD, SUITE 250, DEERFIELD IL 60015
David Bonderman 10 percent owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
James G Coulter 10 percent owner 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Tpg Group Holdings (sbs) Advisors, Inc. 10 percent owner C/O TPG GLOBAL, LLC, 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Jeffrey K. Rhodes director C/O TPG GLOBAL, LLC, 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Todd Benjamin Sisitsky director TPG CAPITAL, 345 CALIFORNIA STREET, SUITE 3800, SAN FRANCISCO CA 94104

Surgical Care Affiliates (Surgical Care Affiliates) Headlines

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