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Vodafone Group Operating Margin %

: 16.75% (As of Sep. 2020)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Vodafone Group's Operating Income for the six months ended in Sep. 2020 was $4,229 Mil. Vodafone Group's Revenue for the six months ended in Sep. 2020 was $25,238 Mil. Therefore, Vodafone Group's Operating Margin % for the quarter that ended in Sep. 2020 was 16.75%.

Good Sign:

Vodafone Group PLC operating margin is expanding. Margin expansion is usually a good sign.

NAS:VOD' s Operating Margin % Range Over the Past 10 Years
Min: 3.67   Med: 9.89   Max: 22
Current: 20.34

3.67
22

NAS:VOD's Operating Margin % is ranked higher than
80% of the 396 Companies
in the Telecommunication Services industry.

( Industry Median: 8.70 vs. NAS:VOD: 20.34 )

Vodafone Group's 5-Year Average Operating Margin % Growth Rate was 34.70% per year.

Vodafone Group's Operating Income for the six months ended in Sep. 2020 was $4,229 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2020 was $9,888 Mil.


Vodafone Group Operating Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Vodafone Group Annual Data
Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.67 8.96 10.49 9.29 19.90

Vodafone Group Semi-Annual Data
Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20
Operating Margin % 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 Premium Member Only Premium Member Only Premium Member Only 10.31 8.27 15.86 23.74 16.75

Competitive Comparison
* 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.


Vodafone Group Operating Margin % Distribution

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



Vodafone 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.

Vodafone Group's Operating Margin % for the fiscal year that ended in Mar. 2020 is calculated as

Operating Margin %=Operating Income (A: Mar. 2020 ) / Revenue (A: Mar. 2020 )
=9888.3977900552 / 49695.027624309
=19.90 %

Vodafone Group's Operating Margin % for the quarter that ended in Sep. 2020 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2020 ) / Revenue (Q: Sep. 2020 )
=4228.5041224971 / 25237.926972909
=16.75 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Vodafone Group  (NAS:VOD) 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.


Vodafone Group Operating Margin % Related Terms


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