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IHS Markit Operating Margin %

: 26.91% (As of Aug. 2021)
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Operating Margin % is calculated as Operating Income divided by its Revenue. IHS Markit's Operating Income for the three months ended in Aug. 2021 was $318 Mil. IHS Markit's Revenue for the three months ended in Aug. 2021 was $1,181 Mil. Therefore, IHS Markit's Operating Margin % for the quarter that ended in Aug. 2021 was 26.91%.

Good Sign:

IHS Markit Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

NYSE:INFO' s Operating Margin % Range Over the Past 10 Years
Min: 12.36   Med: 16.11   Max: 31.65
Current: 25.03

12.36
31.65

NYSE:INFO's Operating Margin % is ranked higher than
91% of the 1033 Companies
in the Business Services industry.

( Industry Median: 5.28 vs. NYSE:INFO: 25.03 )

IHS Markit's 5-Year Average Operating Margin % Growth Rate was 14.60% per year.

IHS Markit's Operating Income for the three months ended in Aug. 2021 was $318 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2021 was $1,148 Mil.


IHS Markit Operating Margin % Historical Data

The historical data trend for IHS Markit'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.

IHS Markit Annual Data
Trend Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.25 17.89 19.40 24.72 31.65

IHS Markit Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
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 26.28 24.08 22.10 26.80 26.91

Competitive Comparison

For the Consulting Services subindustry, IHS Markit'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.

   

IHS Markit Operating Margin % Distribution

For the Business Services industry and Industrials sector, IHS Markit's Operating Margin % distribution charts can be found below:

* The bar in red indicates where IHS Markit's Operating Margin % falls into.



IHS Markit 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.

IHS Markit's Operating Margin % for the fiscal year that ended in Nov. 2020 is calculated as

Operating Margin %=Operating Income (A: Nov. 2020 ) / Revenue (A: Nov. 2020 )
=1356.9 / 4287.8
=31.65 %

IHS Markit's Operating Margin % for the quarter that ended in Aug. 2021 is calculated as

Operating Margin %=Operating Income (Q: Aug. 2021 ) / Revenue (Q: Aug. 2021 )
=317.7 / 1180.5
=26.91 %

* 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.


IHS Markit  (NYSE:INFO) 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.


IHS Markit Operating Margin % Related Terms

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


IHS Markit Business Description

IHS Markit logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.

IHS Markit Headlines

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