GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Northern Star Resources Ltd (OTCPK:NESRF) » Definitions » Operating Margin %

Northern Star Resources (Northern Star Resources) Operating Margin % : 14.18% (As of Dec. 2023)


View and export this data going back to 2014. Start your Free Trial

What is Northern Star Resources Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Northern Star Resources's Operating Income for the six months ended in Dec. 2023 was $213 Mil. Northern Star Resources's Revenue for the six months ended in Dec. 2023 was $1,504 Mil. Therefore, Northern Star Resources's Operating Margin % for the quarter that ended in Dec. 2023 was 14.18%.

Warning Sign:

Northern Star Resources Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -10.1%.

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

NESRF' s Operating Margin % Range Over the Past 10 Years
Min: 9.28   Med: 20.96   Max: 31.71
Current: 25.19


NESRF's Operating Margin % is ranked better than
86.96% of 859 companies
in the Metals & Mining industry
Industry Median: 1.99 vs NESRF: 25.19

Northern Star Resources's 5-Year Average Operating Margin % Growth Rate was -10.10% per year.

Northern Star Resources's Operating Income for the six months ended in Dec. 2023 was $213 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $748 Mil.


Northern Star Resources Operating Margin % Historical Data

The historical data trend for Northern Star Resources'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.

Northern Star Resources Operating Margin % Chart

Northern Star Resources Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.36 20.87 13.37 9.28 21.04

Northern Star Resources Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 9.03 9.51 3.71 36.51 14.18

Competitive Comparison of Northern Star Resources's Operating Margin %

For the Gold subindustry, Northern Star Resources'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.


Northern Star Resources's Operating Margin % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Northern Star Resources's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Northern Star Resources's Operating Margin % falls into.



Northern Star Resources 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.

Northern Star Resources's Operating Margin % for the fiscal year that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=583.289 / 2772.55
=21.04 %

Northern Star Resources's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=213.387 / 1504.418
=14.18 %

* 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.


Northern Star Resources  (OTCPK:NESRF) 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.


Northern Star Resources Operating Margin % Related Terms

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


Northern Star Resources (Northern Star Resources) Business Description

Traded in Other Exchanges
Address
500 Hay Street, Level 4, Subiaco, Perth, WA, AUS, 6008
Northern Star is an Australia-based midtier global gold miner that sold around 1.6 million ounces of gold in fiscal 2023 from its three wholly owned mining operations in Australia and Alaska. Its current operations are the result of significant merger and acquisition activity including 13 acquisitions and four asset sales since 2010. Northern Star had roughly a decade of reserves at the end of fiscal 2023.

Northern Star Resources (Northern Star Resources) Headlines

From GuruFocus

Northern Star Resources Plummets After Releasing Full-Year Results

By Alberto Abaterusso Alberto Abaterusso 08-27-2019

Why Northern Star Resources Limited Is a Buy

By Alberto Abaterusso Alberto Abaterusso 01-29-2020

Gabellie Funds Comments on Northern Star Resources

By Holly LaFon Holly LaFon 11-17-2016

Northern Star Resources Soars on 2nd-Half Results

By Alberto Abaterusso Alberto Abaterusso 02-13-2019

Add Northern Star Resources as Price Falls

By Alberto Abaterusso Alberto Abaterusso 12-04-2018