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TE Connectivity Operating Margin %

: 18.45% (As of Jun. 2022)
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Operating Margin % is calculated as Operating Income divided by its Revenue. TE Connectivity's Operating Income for the three months ended in Jun. 2022 was $756 Mil. TE Connectivity's Revenue for the three months ended in Jun. 2022 was $4,097 Mil. Therefore, TE Connectivity's Operating Margin % for the quarter that ended in Jun. 2022 was 18.45%.

Good Sign:

TE Connectivity Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

TEL' s Operating Margin % Range Over the Past 10 Years
Min: 12.6   Med: 16.05   Max: 18.36
Current: 18.36


TEL's Operating Margin % is ranked better than
90.1% of 2383 companies
in the Hardware industry
Industry Median: 4.60 vs TEL: 18.36

TE Connectivity's 5-Year Average Operating Margin % Growth Rate was 0.20% per year.

TE Connectivity's Operating Income for the three months ended in Jun. 2022 was $756 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2022 was $2,890 Mil.


TE Connectivity Operating Margin % Historical Data

The historical data trend for TE Connectivity'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.

TE Connectivity Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.65 17.67 16.81 14.21 18.08

TE Connectivity Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 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 19.09 18.49 18.12 18.37 18.45

Competitive Comparison

For the Electronic Components subindustry, TE Connectivity'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.

   

TE Connectivity Operating Margin % Distribution

For the Hardware industry and Technology sector, TE Connectivity's Operating Margin % distribution charts can be found below:

* The bar in red indicates where TE Connectivity's Operating Margin % falls into.



TE Connectivity 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.

TE Connectivity's Operating Margin % for the fiscal year that ended in Sep. 2021 is calculated as

Operating Margin %=Operating Income (A: Sep. 2021 ) / Revenue (A: Sep. 2021 )
=2698 / 14923
=18.08 %

TE Connectivity'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 )
=756 / 4097
=18.45 %

* 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.


TE Connectivity  (NYSE:TEL) 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.


TE Connectivity Operating Margin % Related Terms

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


TE Connectivity Business Description

TE Connectivity logo
Traded in Other Exchanges
Address
Muhlenstrasse 26, Schaffhausen, CHE, CH-8200
TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE Connectivity has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.
Executives
Lin Syaru Shirley director
Stucki Aaron Kyle officer: Pres. Communications Solutions 1050 WESTLAKES DRIVE BERWYN PA 19312
Dugle Lynn A director 4803 STONECROFT BOULEVARD CHANTILLY VA 20151
Willoughby Dawn C director 1221 BROADWAY OAKLAND CA 94612
Rock Kevin N officer: President, Industrial Solution 1050 WESTLAKES DRIVE BERWYN PA 19312
Kerko David M director C/O KKR 9 WEST 57TH STREET, 41ST FLOOR NEW YORK NY 10019
Kroeger Shadrak W officer: Pres., Communications Solution 1050 WESTLAKES DRIVE BERWYN PA 19312
Talwalkar Abhijit Y director ONE AMD PLACE PO BOX 3453 SUNNYVALE CA 94088
Mitts Heath A officer: EVP & Chief Financial Officer 1925 WEST FIELD COURT SUITE 200 LAKE FOREST IL 60045
Murphy Tim officer: SVP & CHRO 1050 WESTLAKES DRIVE BERWYN PA 19312
Trudeau Mark director COVIDIEN PLC 15 HAMPSHIRE STREET MANSFIELD MA 02048
Davidson Carol Anthony director
Wright Laura director 2702 LOVE FIELD DRIVE P.O. BOX 36611 DALLAS TX 75235-1611
Jenkins John S officer: EVP & General Counsel 1050 WESTLAKES DRIVE BERWYN PA 19312
Gambill Bradley Alan officer: SVP, Strategy & Business Dev. 1050 WESTLAKES DRIVE BERWYN PA 19312

TE Connectivity Headlines

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