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Trinet Group (Trinet Group) Operating Margin %

: 6.99% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Trinet Group's Operating Income for the three months ended in Dec. 2023 was $87 Mil. Trinet Group's Revenue for the three months ended in Dec. 2023 was $1,245 Mil. Therefore, Trinet Group's Operating Margin % for the quarter that ended in Dec. 2023 was 6.99%.

Good Sign:

Trinet Group Inc operating margin is expanding. Margin expansion is usually a good sign.

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

TNET' s Operating Margin % Range Over the Past 10 Years
Min: 2.93   Med: 7.06   Max: 10.21
Current: 9.53


TNET's Operating Margin % is ranked better than
65.13% of 1061 companies
in the Business Services industry
Industry Median: 6.29 vs TNET: 9.53

Trinet Group's 5-Year Average Operating Margin % Growth Rate was 7.90% per year.

Trinet Group's Operating Income for the three months ended in Dec. 2023 was $87 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $469 Mil.


Trinet Group Operating Margin % Historical Data

The historical data trend for Trinet Group'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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 6.95 [6] => 9.12 [7] => 10.02 [8] => 10.21 [9] => 9.53 )
Trinet Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.95 9.12 10.02 10.21 9.53

Trinet Group Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 4.57 13.56 8.02 9.49 6.99

Competitive Comparison

For the Staffing & Employment Services subindustry, Trinet Group'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.


Trinet Group Operating Margin % Distribution

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

* The bar in red indicates where Trinet Group's Operating Margin % falls into.



Trinet Group 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.

Trinet Group's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=469 / 4922
=9.53 %

Trinet Group's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=87 / 1245
=6.99 %

* 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.


Trinet Group  (NYSE:TNET) 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.


Trinet Group Operating Margin % Related Terms

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


Trinet Group (Trinet Group) Business Description

Traded in Other Exchanges
Address
One Park Place, Suite 600, Dublin, CA, USA, 94568
TriNet offers outsourced payroll and human capital management solutions for small and midsize businesses via a professional employer organization model. Under the PEO model, TriNet enters a co-employment arrangement and acts as the employer of record for administrative and regulatory purposes for clients' employees, known as worksite employees. Clients leverage the scale and expertise of TriNet to access competitive employee benefits, share employment risk liability, access compliance support, and outsource mission-critical day-to-day HR functions such as payroll and tax administration. Following the acquisition of Zenefits and Clarus R+D in 2022, TriNet derives the minority of its revenue from self-service HCM software and R&D tax credit services.
Executives
Alexander G. Warren officer: SVP, CHIEF REVENUE OFFICER ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Burton M. Goldfield director, officer: PRESIDENT, CEO and DIRECTOR ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Ralph A. Clark director C/O SHOTSPOTTER, INC., 7979 GATEWAY BLVD., STE. 210, NEWARK CA 94560
Samantha Wellington officer: SVP, CLO & SECRETARY ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Kelly L Tuminelli officer: EVP & CHIEF FINANCIAL OFFICER TRINET GROUP, INC., ONE PARK PLACE, STE 600, DUBLIN CA 94568
L.p. Agi-t, director, 10 percent owner 40 MORRIS AVENUE, BRYN MAWR PA 19010
Paul Edward Chamberlain director C/O VEEVA SYSTEMS INC., 4280 HACIENDA DRIVE, PLEASANTON CA 94588
Jonathan D. Lee officer: PRINCIPAL ACCOUNTING OFFICER ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Jayaraman Venkataramani officer: CHIEF DIGITAL & INNOV OFFICER ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
H Raymond Bingham director 2655 SEELY AVE, SAN JOSE CA 95134
Martin Babinec director TRINET GROUP INC., ONE PARK PLACE., STE. 600, DUBLIN CA 94568
Wayne B Lowell director 3061 ZANKER ROAD, SAN JOSE CA 95134
Olivier Kohler officer: SVP, CHIEF OPERATING OFFICER ONE PARK PLACE, SUITE 600, DUBLIN CA 94568
Myrna Soto director ONE ENERGY PLAZA, JACKSON MI 49201
Katherine August-dewilde director ONE PARK PLACE, SUITE 600, DUBLIN CA 94568