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Kesko Oyj (Kesko Oyj) Operating Margin % : 5.04% (As of Dec. 2023)


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What is Kesko Oyj Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Kesko Oyj's Operating Income for the three months ended in Dec. 2023 was $160 Mil. Kesko Oyj's Revenue for the three months ended in Dec. 2023 was $3,165 Mil. Therefore, Kesko Oyj's Operating Margin % for the quarter that ended in Dec. 2023 was 5.04%.

Good Sign:

Kesko Oyj operating margin is expanding. Margin expansion is usually a good sign.

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

KKOYY' s Operating Margin % Range Over the Past 10 Years
Min: 1.03   Med: 3.56   Max: 6.3
Current: 5.74


KKOYY's Operating Margin % is ranked better than
74.52% of 314 companies
in the Retail - Defensive industry
Industry Median: 3.25 vs KKOYY: 5.74

Kesko Oyj's 5-Year Average Operating Margin % Growth Rate was 12.60% per year.

Kesko Oyj's Operating Income for the three months ended in Dec. 2023 was $160 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $729 Mil.


Kesko Oyj Operating Margin % Historical Data

The historical data trend for Kesko Oyj'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.

Kesko Oyj Operating Margin % Chart

Kesko Oyj Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.73 4.65 6.21 6.30 5.35

Kesko Oyj Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % Get a 7-Day Free Trial 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 6.03 4.47 6.50 6.85 5.04

Competitive Comparison of Kesko Oyj's Operating Margin %

For the Grocery Stores subindustry, Kesko Oyj'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.


Kesko Oyj's Operating Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Kesko Oyj's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Kesko Oyj's Operating Margin % falls into.



Kesko Oyj 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.

Kesko Oyj'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 )
=687.132 / 12850.382
=5.35 %

Kesko Oyj'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 )
=159.542 / 3164.667
=5.04 %

* 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.


Kesko Oyj  (OTCPK:KKOYY) 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.


Kesko Oyj Operating Margin % Related Terms

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Kesko Oyj (Kesko Oyj) Business Description

Address
Tyopajankatu 12, Helsinki, FIN, 00580
Kesko Oyj is a Finland-based retail conglomerate that operates in three divisions: Grocery, Building and Technical, and Car. The Grocery segment provides the customers with K-food retailers running their locally tailored stores, acting in a chain business model. Chains include K-Citymarket, K-Supermarket, K-Market, and Neste K. The Building and Technical Sector produces construction materials, leisure athletic goods, and infrastructure tools and operates out of Scandinavia and Eastern Europe, both in digital and brick-and-mortar stores. The Car division acts as an importer and leaser for various European car brands, including Volkswagen, SEAT, Audi, and Porsche as well as a seller of used cars online and in-store. The Grocery segment in Finland produces the most revenue.

Kesko Oyj (Kesko Oyj) Headlines

From GuruFocus

Kesko Oyj's Dividend Analysis

By GuruFocus Research 12-11-2023