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Operating Margin % is calculated as Operating Income divided by its Revenue. American Renal Associates Holdings's Operating Income for the three months ended in Sep. 2020 was $22.2 Mil. American Renal Associates Holdings's Revenue for the three months ended in Sep. 2020 was $209.7 Mil. Therefore, American Renal Associates Holdings's Operating Margin % for the quarter that ended in Sep. 2020 was 10.58%.
The historical rank and industry rank for American Renal Associates Holdings's Operating Margin % or its related term are showing as below:
American Renal Associates Holdings's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
American Renal Associates Holdings's Operating Income for the three months ended in Sep. 2020 was $22.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2020 was $65.9 Mil.
The historical data trend for American Renal Associates Holdings'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.
American Renal Associates Holdings Annual Data | |||||||||||||||||
Trend | Dec12 | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | |||||||||
Operating Margin % | Get a 7-Day Free Trial | 23.42 | 19.01 | 12.47 | 6.93 | 6.28 |
American Renal Associates Holdings Quarterly Data | ||||||||||||||||||||
Dec15 | Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | |
Operating Margin % | Get a 7-Day Free Trial | 8.61 | 6.41 | 1.68 | 13.29 | 10.58 |
For the Diagnostics & Research subindustry, American Renal Associates Holdings'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 Medical Diagnostics & Research industry and Healthcare sector, American Renal Associates Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where American Renal Associates Holdings'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.
American Renal Associates Holdings's Operating Margin % for the fiscal year that ended in Dec. 2019 is calculated as
Operating Margin % | = | Operating Income (A: Dec. 2019 ) | / | Revenue (A: Dec. 2019 ) |
= | 51.673 | / | 822.522 | |
= | 6.28 % |
American Renal Associates Holdings'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 ) |
= | 22.194 | / | 209.689 | |
= | 10.58 % |
* 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.
American Renal Associates Holdings (NYSE:ARA) 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.
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Don E Williamson | officer: EVP, Chief Operating Officer | 500 CUMMINGS CENTER, SUITE 6550 BEVERLY MA 01915 |
Victoria Labriola | officer: VP and General Counsel | AMERICAN RENAL HOLDINGS, INC. 500 CUMMINGS CENTER, SUITE 6550 BEVERLY MA 01915 |
Joseph A Carlucci | director, officer: Chief Executive Officer | C/O AMERICAN RENAL ASSOCIATES HOLDINGS 500 CUMMINGS CENTER BEVERLY MA 01915 |
Syed T Kamal | director, officer: President | C/O AMERICAN RENAL ASSOCIATES HOLDINGS 500 CUMMINGS CENTER BEVERLY MA 01915 |
Jeremy Gelber | director | C/O CENTERBRIDGE PARTNERS, L.P., 375 PARK AVE, 12TH FLOOR, NEW YORK NY 10152 |
Christopher J Hocevar | director | 1601 CHESTNUT STREET SHAREHOLDER SERVICES TL05Y PHILADELPHIA PA 19192 |
Robert H Fish | director | C/O SKILLED HEALTHCARE 27442 PORTOLA PARKWAY, SUITE 200 FOOTHILL RANCH CA 92610 |
Michael Boxer | director | 9151 BOULEVARD 26 NORTH RICHLAND HILLS TX 76180 |
John M Jureller | director | FRONTIER COMMUNICATIONS, 401 MERRITT 7, NORWALK CT 06851 |
Thomas W Erickson | director | OMEGA HEALTHCARE INVESTORS INC, 900 VICTORS WAY STE. 350, AMM ARBER MI 48108 |
Jason Boucher | officer: Former VP & CFO | 500 CUMMINGS CENTER SUITE 6550 BEVERLY MA 01915 |
Mark Herbers | officer: Interim CFO and Interim CAO | 500 CUMMINGS CENTER, SUITE 6550, BEVERLY MA 01915 |
Michael Ray Costa | officer: VP and General Counsel | C/O AMERICAN RENAL ASSOCIATES HOLDINGS 500 CUMMINGS CENTER BEVERLY MA 01915 |
Patrick T Ryan | director | 401 EDGEWATER PLACE, SUITE 500, WAKEFIELD MA 01880 |
Jonathan L Wilcox | officer: VP & Chief Financial Officer | C/O AMERICAN RENAL ASSOCIATES HOLDINGS 500 CUMMINGS CENTER BEVERLY MA 01915 |
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