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Compagnie Financiere Richemont Operating Margin %

: 14.03% (As of Mar. 2022)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Compagnie Financiere Richemont's Operating Income for the six months ended in Mar. 2022 was $1,587 Mil. Compagnie Financiere Richemont's Revenue for the six months ended in Mar. 2022 was $11,315 Mil. Therefore, Compagnie Financiere Richemont's Operating Margin % for the quarter that ended in Mar. 2022 was 14.03%.

Warning Sign:

Compagnie Financiere Richemont SA operating margin has been in a 5-year decline. The average rate of decline per year is -1.8%.

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

CFRHF' s Operating Margin % Range Over the Past 10 Years
Min: 10.65   Med: 17.14   Max: 24.12
Current: 17.65


CFRHF's Operating Margin % is ranked better than
91.56% of 1114 companies
in the Retail - Cyclical industry
Industry Median: 3.81 vs CFRHF: 17.65

Compagnie Financiere Richemont's 5-Year Average Operating Margin % Growth Rate was -1.80% per year.

Compagnie Financiere Richemont's Operating Income for the six months ended in Mar. 2022 was $1,587 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2022 was $3,851 Mil.


Compagnie Financiere Richemont Operating Margin % Historical Data

The historical data trend for Compagnie Financiere Richemont'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.

Compagnie Financiere Richemont Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.73 13.88 10.65 11.23 17.54

Compagnie Financiere Richemont Semi-Annual Data
Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22
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 5.13 8.23 13.37 21.60 14.03

Competitive Comparison

For the Luxury Goods subindustry, Compagnie Financiere Richemont'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.

   

Compagnie Financiere Richemont Operating Margin % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Compagnie Financiere Richemont's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Compagnie Financiere Richemont's Operating Margin % falls into.



Compagnie Financiere Richemont 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.

Compagnie Financiere Richemont's Operating Margin % for the fiscal year that ended in Mar. 2022 is calculated as

Operating Margin %=Operating Income (A: Mar. 2022 ) / Revenue (A: Mar. 2022 )
=3705.9471365639 / 21124.449339207
=17.54 %

Compagnie Financiere Richemont's Operating Margin % for the quarter that ended in Mar. 2022 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2022 ) / Revenue (Q: Mar. 2022 )
=1587.0044052863 / 11314.977973568
=14.03 %

* 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.


Compagnie Financiere Richemont  (OTCPK:CFRHF) 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.


Compagnie Financiere Richemont Operating Margin % Related Terms

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Compagnie Financiere Richemont Business Description

Compagnie Financiere Richemont logo
Address
50, Chemin de la Chenaie, CP 30, Bellevue, Geneva, CHE, 1293
Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up over 70% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for 56% of revenue and over 95% of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, and Montblanc. Online businesses include Yoox Net-a-Porter.

Compagnie Financiere Richemont Headlines

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