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Kweichow Moutai Co Operating Margin %

: 66.59% (As of Jun. 2021)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Kweichow Moutai Co's Operating Income for the three months ended in Jun. 2021 was CN¥15,087 Mil. Kweichow Moutai Co's Revenue for the three months ended in Jun. 2021 was CN¥22,657 Mil. Therefore, Kweichow Moutai Co's Operating Margin % for the quarter that ended in Jun. 2021 was 66.59%.

Good Sign:

Kweichow Moutai Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

SHSE:600519' s Operating Margin % Range Over the Past 10 Years
Min: 60.38   Med: 66.49   Max: 69.59
Current: 66.99

60.38
69.59

SHSE:600519's Operating Margin % is ranked higher than
88% of the 25 Companies
in the Beverages - Alcoholic industry.

( Industry Median: 10.62 vs. SHSE:600519: 66.99 )

Kweichow Moutai Co's 5-Year Average Operating Margin % Growth Rate was 1.30% per year.

Kweichow Moutai Co's Operating Income for the three months ended in Jun. 2021 was CN¥15,087 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2021 was CN¥69,056 Mil.


Kweichow Moutai Co Operating Margin % Historical Data

The historical data trend for Kweichow Moutai Co'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.

Kweichow Moutai Co Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 60.38 63.67 66.50 66.48 67.83

Kweichow Moutai Co Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 66.48 66.09 65.33 69.77 66.59

Competitive Comparison

For the Beverages - Wineries & Distilleries subindustry, Kweichow Moutai Co'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.

   

Kweichow Moutai Co Operating Margin % Distribution

For the Beverages - Alcoholic industry and Consumer Defensive sector, Kweichow Moutai Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Kweichow Moutai Co's Operating Margin % falls into.



Kweichow Moutai Co 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.

Kweichow Moutai Co's Operating Margin % for the fiscal year that ended in Dec. 2020 is calculated as

Operating Margin %=Operating Income (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=66466.743 / 97993.241
=67.83 %

Kweichow Moutai Co's Operating Margin % for the quarter that ended in Jun. 2021 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2021 ) / Revenue (Q: Jun. 2021 )
=15087.154 / 22656.847
=66.59 %

* 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.


Kweichow Moutai Co  (SHSE:600519) 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.


Kweichow Moutai Co Operating Margin % Related Terms

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


Kweichow Moutai Co Business Description

Kweichow Moutai Co logo
Industry
Traded in Other Exchanges
N/A
Address
Guizhou Province, Maotai Town, Renhuai, CHN, 564501
Kweichow Moutai is one of China's largest liquor producers. The company was established in 1951 and its headquarters is located in Moutai Town, Guizhou province, southwest China. Its core product, 53-degree Feitian Moutai, is known as China's national drink and has been consumed during many high-profile historical and political events. Given its historical and cultural significance, the company achieves the industry's highest retail prices and profit margins.

Kweichow Moutai Co Headlines

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