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Lonza Group (Lonza Group) Operating Margin % : 7.34% (As of Dec. 2023)


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What is Lonza Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Lonza Group's Operating Income for the six months ended in Dec. 2023 was $309 Mil. Lonza Group's Revenue for the six months ended in Dec. 2023 was $4,208 Mil. Therefore, Lonza Group's Operating Margin % for the quarter that ended in Dec. 2023 was 7.34%.

Warning Sign:

Lonza Group Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3.4%.

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

LZAGY' s Operating Margin % Range Over the Past 10 Years
Min: 11.39   Med: 14.8   Max: 21.81
Current: 13


LZAGY's Operating Margin % is ranked better than
74.78% of 226 companies
in the Medical Diagnostics & Research industry
Industry Median: -5.15 vs LZAGY: 13.00

Lonza Group's 5-Year Average Operating Margin % Growth Rate was -3.40% per year.

Lonza Group's Operating Income for the six months ended in Dec. 2023 was $309 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $982 Mil.


Lonza Group Operating Margin % Historical Data

The historical data trend for Lonza 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.

Lonza Group Operating Margin % Chart

Lonza Group 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 20.20 20.67 15.29 21.81 13.00

Lonza Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 17.79 23.98 19.81 19.69 7.34

Competitive Comparison of Lonza Group's Operating Margin %

For the Diagnostics & Research subindustry, Lonza 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.


Lonza Group's Operating Margin % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Lonza Group's Operating Margin % distribution charts can be found below:

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



Lonza 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.

Lonza 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 )
=1009.482 / 7767.114
=13.00 %

Lonza 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 )
=308.742 / 4207.909
=7.34 %

* 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.


Lonza Group  (OTCPK:LZAGY) 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.


Lonza Group Operating Margin % Related Terms

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Lonza Group (Lonza Group) Business Description

Address
Muenchensteinerstrasse 38, Basel, CHE, CH-4002
Lonza Group is a contract development and manufacturing organization, or CDMO. It operates under four segments: small molecules, biologics, cell & gene, and capsules & health ingredients. Lonza derives its revenue primarily from long-term supply agreements with pharmaceutical customers. The company provides a range of development and manufacturing services throughout the entire lifecycle of a product from drug research to commercial supply. The majority of Lonza's customers are pharmaceutical and biotechnology companies, academic institutions, and government research organizations.