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Siemens Healthineers AG (Siemens Healthineers AG) Operating Margin % : 11.50% (As of Dec. 2023)


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What is Siemens Healthineers AG Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Siemens Healthineers AG's Operating Income for the three months ended in Dec. 2023 was $649 Mil. Siemens Healthineers AG's Revenue for the three months ended in Dec. 2023 was $5,644 Mil. Therefore, Siemens Healthineers AG's Operating Margin % for the quarter that ended in Dec. 2023 was 11.50%.

Warning Sign:

Siemens Healthineers AG operating margin has been in a 5-year decline. The average rate of decline per year is -6.6%.

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

SMMNY' s Operating Margin % Range Over the Past 10 Years
Min: 9.84   Med: 14.6   Max: 16.25
Current: 10.15


SMMNY's Operating Margin % is ranked better than
67.98% of 815 companies
in the Medical Devices & Instruments industry
Industry Median: 1.44 vs SMMNY: 10.15

Siemens Healthineers AG's 5-Year Average Operating Margin % Growth Rate was -6.60% per year.

Siemens Healthineers AG's Operating Income for the three months ended in Dec. 2023 was $649 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $2,382 Mil.


Siemens Healthineers AG Operating Margin % Historical Data

The historical data trend for Siemens Healthineers AG'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.

Siemens Healthineers AG Operating Margin % Chart

Siemens Healthineers AG Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only 15.81 13.44 14.27 13.47 9.84

Siemens Healthineers AG Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 10.20 3.52 10.92 14.18 11.50

Competitive Comparison of Siemens Healthineers AG's Operating Margin %

For the Medical Devices subindustry, Siemens Healthineers AG'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.


Siemens Healthineers AG's Operating Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Siemens Healthineers AG's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Siemens Healthineers AG's Operating Margin % falls into.



Siemens Healthineers AG 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.

Siemens Healthineers AG's Operating Margin % for the fiscal year that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=2276.414 / 23137.673
=9.84 %

Siemens Healthineers AG'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 )
=648.855 / 5644.493
=11.50 %

* 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.


Siemens Healthineers AG  (OTCPK:SMMNY) 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.


Siemens Healthineers AG Operating Margin % Related Terms

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Siemens Healthineers AG (Siemens Healthineers AG) Business Description

Traded in Other Exchanges
Address
Siemensstr. 3, Forchheim, BY, DEU, 91301
Siemens Healthineers AG is engaged in the fields of diagnostic, therapeutic imaging, laboratory and point of care diagnostics as well as clinical consulting services. The imaging segment products equipment include magnetic resonance imaging, computed tomography, X-ray systems, molecular imaging and ultrasound. The portfolio of the Diagnostics segment includes; immunochemistry, hematology, coagulation, urinalysis, etc. Advanced Therapies segment products are designed to support image-guided minimally invasive treatments in cardiology, interventional radiology and surgery. Varian segment provides multi-modality cancer care technologies, solutions and services to oncology departments in hospitals and clinics. It caters and earns revenue from Europe, the Middle East, Africa, China and others.