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Ramsay Health Care (Ramsay Health Care) Operating Margin % : 5.44% (As of Dec. 2023)


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What is Ramsay Health Care Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Ramsay Health Care's Operating Income for the six months ended in Dec. 2023 was $295 Mil. Ramsay Health Care's Revenue for the six months ended in Dec. 2023 was $5,412 Mil. Therefore, Ramsay Health Care's Operating Margin % for the quarter that ended in Dec. 2023 was 5.44%.

Warning Sign:

Ramsay Health Care Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -22.8%.

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

RMSYF' s Operating Margin % Range Over the Past 10 Years
Min: 1.42   Med: 7.87   Max: 10.19
Current: 4.63


RMSYF's Operating Margin % is ranked better than
52.39% of 649 companies
in the Healthcare Providers & Services industry
Industry Median: 3.87 vs RMSYF: 4.63

Ramsay Health Care's 5-Year Average Operating Margin % Growth Rate was -22.80% per year.

Ramsay Health Care's Operating Income for the six months ended in Dec. 2023 was $295 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $491 Mil.


Ramsay Health Care Operating Margin % Historical Data

The historical data trend for Ramsay Health Care'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.

Ramsay Health Care Operating Margin % Chart

Ramsay Health Care Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.17 3.60 1.42 1.76 3.73

Ramsay Health Care 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 4.12 -0.54 3.68 3.77 5.44

Competitive Comparison of Ramsay Health Care's Operating Margin %

For the Medical Care Facilities subindustry, Ramsay Health Care'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.


Ramsay Health Care's Operating Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Ramsay Health Care's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Ramsay Health Care's Operating Margin % falls into.



Ramsay Health Care 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.

Ramsay Health Care's Operating Margin % for the fiscal year that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=371.946 / 9975.168
=3.73 %

Ramsay Health Care'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 )
=294.645 / 5411.714
=5.44 %

* 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.


Ramsay Health Care  (OTCPK:RMSYF) 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.


Ramsay Health Care Operating Margin % Related Terms

Thank you for viewing the detailed overview of Ramsay Health Care's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ramsay Health Care (Ramsay Health Care) Business Description

Address
126 Phillip Street, Suite 18.03, Level 18, Deutsche Bank Place, Sydney, NSW, AUS, 2000
Ramsay Health Care is one of the largest private healthcare providers in the world, with over 460 facilities across 10 countries. The key markets in which it operates are Australia, France, the U.K., and Sweden. It is the largest private hospital group in each of these markets except for the U.K. where it ranks fifth. Ramsay Sante, which operates the European regions other than the U.K., is a 52.5%-owned subsidiary of Ramsay Health Care. The company typically earns about 60% of consolidated earnings in Australia and 30% in France. Ramsay Health Care undertakes both private and publicly funded healthcare.

Ramsay Health Care (Ramsay Health Care) Headlines