Operating Margin % is calculated as Operating Income divided by its Revenue. Deere's Operating Income for the
three
months ended in Jan. 2022 was $1,151 Mil. Deere's Revenue for the
three
months ended in Jan. 2022 was $9,569 Mil. Therefore, Deere's Operating Margin % for the quarter that ended in Jan. 2022 was 12.03%.
Good Sign:
Deere & Co operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Deere's Operating Margin % or its related term are showing as below:
DE'
s Operating Margin % Range Over the Past 10 Years
Min: 8.09 Med: 11.03 Max: 17.2
Current: 16.17
DE's Operating Margin % is ranked better than 91.24% of 194
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 5.63
vs DE: 16.17
Deere's 5-Year Average Operating Margin % Growth Rate was 12.80% per year.
Deere's Operating Income for the
three
months ended in Jan. 2022 was $1,151 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2022 was $7,120 Mil.
Deere Operating Margin % Historical Data
The historical data trend for Deere'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.
Deere Annual Data
Trend
Oct12
Oct13
Oct14
Oct15
Oct16
Oct17
Oct18
Oct19
Oct20
Oct21
Operating Margin %
9.49
10.96
10.84
11.09
17.20
Deere Quarterly Data
Apr17
Jul17
Oct17
Jan18
Apr18
Jul18
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Operating Margin %
16.77
19.17
18.65
13.84
12.03
Competitive Comparison
For the Farm & Heavy Construction Machinery subindustry, Deere'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.
Deere Operating Margin % Distribution
For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Deere's Operating Margin % falls into.
Deere 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.
Deere's Operating Margin % for the fiscal year that ended in Oct. 2021 is calculated as
* 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.
Deere (NYSE:DE) 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 NokiaÂ’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.
Deere Operating Margin % Related Terms
Thank you for viewing the detailed overview of Deere's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital. Its products are available through a robust dealer network, which includes over 1,900 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital provides retail financing for machinery to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Deere product sales.
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