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Rio Tinto Operating Margin %

: 40.99% (As of Jun. 2022)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Rio Tinto's Operating Income for the six months ended in Jun. 2022 was $12,206 Mil. Rio Tinto's Revenue for the six months ended in Jun. 2022 was $29,775 Mil. Therefore, Rio Tinto's Operating Margin % for the quarter that ended in Jun. 2022 was 40.99%.

Good Sign:

Rio Tinto PLC operating margin is expanding. Margin expansion is usually a good sign.

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

RIO' s Operating Margin % Range Over the Past 10 Years
Min: 17.43   Med: 28.97   Max: 46.95
Current: 40.84


RIO's Operating Margin % is ranked better than
91.25% of 777 companies
in the Metals & Mining industry
Industry Median: 6.70 vs RIO: 40.84

Rio Tinto's 5-Year Average Operating Margin % Growth Rate was 16.60% per year.

Rio Tinto's Operating Income for the six months ended in Jun. 2022 was $12,206 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2022 was $24,579 Mil.


Rio Tinto Operating Margin % Historical Data

The historical data trend for Rio Tinto'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.

Rio Tinto Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.55 30.49 35.24 40.53 46.95

Rio Tinto Semi-Annual Data
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22
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 35.46 44.43 52.71 40.68 40.99

Competitive Comparison

For the Other Industrial Metals & Mining subindustry, Rio Tinto'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.

   

Rio Tinto Operating Margin % Distribution

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

* The bar in red indicates where Rio Tinto's Operating Margin % falls into.



Rio Tinto 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.

Rio Tinto's Operating Margin % for the fiscal year that ended in Dec. 2021 is calculated as

Operating Margin %=Operating Income (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=29810 / 63495
=46.95 %

Rio Tinto's Operating Margin % for the quarter that ended in Jun. 2022 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=12206 / 29775
=40.99 %

* 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.


Rio Tinto  (NYSE:RIO) 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.


Rio Tinto Operating Margin % Related Terms

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Rio Tinto Business Description

Rio Tinto logo
Address
6 St James’s Square, London, GBR, SW1Y 4AD
Rio Tinto searches for and extracts a variety of minerals worldwide, with the heaviest concentrations in North America and Australia. Iron ore is the dominant commodity, with significantly lesser contributions from aluminium, copper, diamonds, gold, and industrial minerals. The 1995 merger of RTZ and CRA, via a dual-listed structure, created the present-day company. The two operate as a single business entity. Shareholders in each company have equivalent economic and voting rights.

Rio Tinto Headlines

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