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Becton, Dickinson and Co Operating Margin %

: 10.44% (As of Mar. 2020)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Becton, Dickinson and Co's Operating Income for the three months ended in Mar. 2020 was $444 Mil. Becton, Dickinson and Co's Revenue for the three months ended in Mar. 2020 was $4,253 Mil. Therefore, Becton, Dickinson and Co's Operating Margin % for the quarter that ended in Mar. 2020 was 10.44%.

Warning Sign:

Becton, Dickinson and Co operating margin has been in 5-year decline. The average rate of decline per year is -6%.

NYSE:BDX' s Operating Margin % Range Over the Past 10 Years
Min: 11.8   Med: 16.44   Max: 22.21
Current: 11.8
11.8
22.21

NYSE:BDX's Operating Margin % is ranked higher than
71% of the 619 Companies
in the Medical Devices & Instruments industry.

( Industry Median: 2.81 vs. NYSE:BDX: 11.80 )

Becton, Dickinson and Co's 5-Year Average Operating Margin % Growth Rate was -6.00% per year.

Becton, Dickinson and Co's Operating Income for the three months ended in Mar. 2020 was $444 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2020 was $2,054 Mil.

Becton, Dickinson and Co 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.

Becton, Dickinson and Co Annual Data
Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.59 17.29 15.15 13.99 12.94

Becton, Dickinson and Co Quarterly Data
Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
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 5.65 16.46 6.70 13.89 10.44
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.

Becton, Dickinson and Co Operating Margin % Distribution

* The bar in red indicates where Becton, Dickinson and Co's Operating Margin % falls into.


Becton, Dickinson and Co 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.

Becton, Dickinson and Co's Operating Margin % for the fiscal year that ended in Sep. 2019 is calculated as

Operating Margin %=Operating Income (A: Sep. 2019 ) / Revenue (A: Sep. 2019 )
=2238 / 17290
=12.94 %

Becton, Dickinson and Co's Operating Margin % for the quarter that ended in Mar. 2020 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2020 ) / Revenue (Q: Mar. 2020 )
=444 / 4253
=10.44 %

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

Becton, Dickinson and Co  (NYSE:BDX) 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.

Becton, Dickinson and Co Operating Margin % Related Terms

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