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Vodafone Group Operating Margin %

: 12.18% (As of Sep. 2021)
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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. 2021 was $3,222 Mil. Vodafone Group's Revenue for the six months ended in Sep. 2021 was $26,458 Mil. Therefore, Vodafone Group's Operating Margin % for the quarter that ended in Sep. 2021 was 12.18%.

Good Sign:

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

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

NAS:VOD' s Operating Margin % Range Over the Past 10 Years
Min: 3.67   Med: 9.89   Max: 22
Current: 10.44

3.67
22

NAS:VOD's Operating Margin % is ranked higher than
54% of the 394 Companies
in the Telecommunication Services industry.

( Industry Median: 8.70 vs. NAS:VOD: 10.44 )

Vodafone Group's 5-Year Average Operating Margin % Growth Rate was 26.90% per year.

Vodafone Group's Operating Income for the six months ended in Sep. 2021 was $3,222 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2021 was $5,540 Mil.


Vodafone Group Operating Margin % Historical Data

The historical data trend for Vodafone 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.

Vodafone Group Annual Data
Trend Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.96 10.49 9.29 19.90 12.37

Vodafone Group Semi-Annual Data
Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21
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 15.86 23.74 16.20 8.70 12.18

Competitive Comparison

For the Telecom Services subindustry, Vodafone 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.

   

Vodafone Group Operating Margin % Distribution

For the Telecommunication Services industry and Communication Services sector, Vodafone Group's Operating Margin % distribution charts can be found below:

* 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. 2021 is calculated as

Operating Margin %=Operating Income (A: Mar. 2021 ) / Revenue (A: Mar. 2021 )
=6451.1904761905 / 52153.571428571
=12.37 %

Vodafone Group'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 )
=3222.3529411765 / 26457.647058824
=12.18 %

* 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.


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

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


Vodafone Group Business Description

Vodafone Group logo
Address
Vodafone House, The Connection, Newbury, Berkshire, GBR, RG14 2FN
With about 270 million wireless customers, Vodafone is one of the largest wireless carriers in the world. More recently, the firm has acquired cable operations and gained access to additional fixed-line networks, either building its own or gaining wholesale access. Vodafone is increasingly pushing converged services of wireless and fixed-line telephone services. Europe accounts for about three fourths of reported service revenue, with major operations in Germany (about 30% of total service revenue), the U.K. (13%), Italy (12%), and Spain (10%). Outside of Europe, 65%-owned Vodacom, which serves sub-Saharan Africa, is Vodafone's largest controlled subsidiary (12% of total service revenue). The firm also owns stakes in operations in India, Australia, and the Netherlands.

Vodafone Group Headlines

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