Operating Margin % is calculated as Operating Income divided by its Revenue. Resources Connection's Operating Income for the
three
months ended in May. 2023 was $17.0 Mil. Resources Connection's Revenue for the
three
months ended in May. 2023 was $184.4 Mil. Therefore, Resources Connection's Operating Margin % for the quarter that ended in May. 2023 was 9.24%.
Good Sign:
Resources Connection Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Resources Connection's Operating Margin % or its related term are showing as below:
RGP'
s Operating Margin % Range Over the Past 10 Years
Min: 3.65 Med: 6.79 Max: 10.36
Current: 9.77
RGP's Operating Margin % is ranked better than 64.22% of 1062
companies
in the Business Services industry
Industry Median: 6.19
vs RGP: 9.77
Resources Connection's 5-Year Average Operating Margin % Growth Rate was 13.90% per year.
Resources Connection's Operating Income for the
three
months ended in May. 2023 was $17.0 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in May. 2023 was $75.7 Mil.
Resources Connection Operating Margin % Historical Data
The historical data trend for Resources Connection'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.
Resources Connection Annual Data
Trend
May14
May15
May16
May17
May18
May19
May20
May21
May22
May23
Operating Margin %
6.88
5.21
3.65
10.36
9.77
Resources Connection Quarterly Data
Aug18
Nov18
Feb19
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
May23
Operating Margin %
12.96
12.32
11.72
5.39
9.24
Competitive Comparison
For the Consulting Services subindustry, Resources Connection'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.
Resources Connection Operating Margin % Distribution
For the Business Services industry and Industrials sector, Resources Connection's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Resources Connection's Operating Margin % falls in comparison to its industry or sector. The grey bar indicates the Operating Margin %'s extreme value range as defined by GuruFocus.
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.
Resources Connection's Operating Margin % for the fiscal year that ended in May. 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.
Resources Connection Operating Margin % Related Terms
Thank you for viewing the detailed overview of Resources Connection's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Resources Connection (NAS:RGP) Business Description
Resources Connection Inc provides consulting and business initiative support services primarily through its operative subsidiary, Resources Global Professionals. It has two segments RGP ( Resources Global Professionals.) and Other segments. The company offers transformation and improvement, financial reporting and analysis, strategy development, and program and project management services and support. Its clients operate in the accounting, finance, corporate governance, risk and compliance management, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, and legal and regulatory sectors.
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