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SoftBank Group (SoftBank Group) Operating Margin %

: 9.20% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. SoftBank Group's Operating Income for the three months ended in Dec. 2023 was $1,134 Mil. SoftBank Group's Revenue for the three months ended in Dec. 2023 was $12,327 Mil. Therefore, SoftBank Group's Operating Margin % for the quarter that ended in Dec. 2023 was 9.20%.

Warning Sign:

SoftBank Group Corp operating margin has been in a 5-year decline. The average rate of decline per year is -13.3%.

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

SFTBF' s Operating Margin % Range Over the Past 10 Years
Min: 7.71   Med: 11.34   Max: 31.14
Current: 7.71


SFTBF's Operating Margin % is ranked worse than
51.05% of 380 companies
in the Telecommunication Services industry
Industry Median: 8.275 vs SFTBF: 7.71

SoftBank Group's 5-Year Average Operating Margin % Growth Rate was -13.30% per year.

SoftBank Group's Operating Income for the three months ended in Dec. 2023 was $1,134 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $3,561 Mil.

Warning Sign:

SoftBank Group Corp has recorded a loss in operating income at least once over the past 3 years.


SoftBank Group Operating Margin % Historical Data

The historical data trend for SoftBank 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.

SoftBank Group Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.14 11.35 10.72 11.47 9.63

SoftBank 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 11.28 -1.49 11.81 11.63 9.20

Competitive Comparison

For the Telecom Services subindustry, SoftBank 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.


SoftBank Group Operating Margin % Distribution

For the Telecommunication Services industry and Communication Services sector, SoftBank Group's Operating Margin % distribution charts can be found below:

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



SoftBank 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.

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

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=4733.605 / 49156.274
=9.63 %

SoftBank 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 )
=1134.486 / 12326.868
=9.20 %

* 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.


SoftBank Group  (OTCPK:SFTBF) 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.


SoftBank Group Operating Margin % Related Terms

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SoftBank Group (SoftBank Group) Business Description

Address
1-9-1 Higashi-shimbashi, Minato-ku, Tokyo, JPN, 105-7303
SoftBank is a Japan-based telecom and e-commerce conglomerate that has expanded mainly through acquisitions, and its key assets include a 40%-owned mobile and fixed broadband telecom operator business in Japan. It also owns 90% of semiconductor chip designer ARM Holdings following the 2023 IPO of this business, and has a vast portfolio of mainly internet- and e-commerce-focused early stage investments. It is also general partner of the $100 billion SoftBank Vision Fund 1 and sole investor in SoftBank Vision Fund 2, both of which primarily invest in pre-IPO internet companies.