Operating Margin % is calculated as Operating Income divided by its Revenue. Heineken Holding NV's Operating Income for the
six
months ended in Dec. 2023 was $1,494 Mil. Heineken Holding NV's Revenue for the
six
months ended in Dec. 2023 was $17,272 Mil. Therefore, Heineken Holding NV's Operating Margin % for the quarter that ended in Dec. 2023 was 8.65%.
Warning Sign:
Heineken Holding NV 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 Heineken Holding NV's Operating Margin % or its related term are showing as below:
HKHHF'
s Operating Margin % Range Over the Past 10 Years
Min: 3.66 Med: 13.52 Max: 15.16
Current: 9.34
HKHHF's Operating Margin % is ranked better than 52.86% of 210
companies
in the Beverages - Alcoholic industry
Industry Median: 8.595
vs HKHHF: 9.34
Heineken Holding NV's 5-Year Average Operating Margin % Growth Rate was -1.80% per year.
Heineken Holding NV's Operating Income for the
six
months ended in Dec. 2023 was $1,494 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $3,082 Mil.
Heineken Holding NV Operating Margin % Historical Data
The historical data trend for Heineken Holding NV'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.
Competitive Comparison of Heineken Holding NV's Operating Margin %
For the Beverages - Brewers subindustry, Heineken Holding NV'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.
Heineken Holding NV's Operating Margin % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Heineken Holding NV's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Heineken Holding NV's Operating Margin % falls into.
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.
Heineken Holding NV's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
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 Nokias 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.
Heineken Holding NV Operating Margin % Related Terms
Thank you for viewing the detailed overview of Heineken Holding NV's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Heineken Holding NV (Heineken Holding NV) Business Description
Heineken Holding NV holds more than 50% of Heineken NV's issued shares. It does not engage in operational activities and generates income almost exclusively by receiving Heineken dividends. Heineken Holding NV has five segments: Europe, Americas, Africa, Middle East & Eastern Europe, and Asia-Pacific. Heineken NV brews and sells more than 200 brands of beer in nearly 200 countries. Notable brands include Heineken, Amstel, Dos Equis, Tecate, Goldberg, Red Stripe, Legunitas, and Tiger. Close to half of Heineken NV's revenue comes from Europe, and nearly one third of its revenue comes from the Americas. The remaining revenue is split among the Asia-Pacific, Africa, and Middle East and Eastern Europe regions.
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