Operating Margin % is calculated as Operating Income divided by its Revenue. Sitio Royalties's Operating Income for the
three
months ended in Dec. 2023 was $68.9 Mil. Sitio Royalties's Revenue for the
three
months ended in Dec. 2023 was $149.4 Mil. Therefore, Sitio Royalties's Operating Margin % for the quarter that ended in Dec. 2023 was 46.14%.
The historical rank and industry rank for Sitio Royalties's Operating Margin % or its related term are showing as below:
STR'
s Operating Margin % Range Over the Past 10 Years
Min: -7.04 Med: 45.82 Max: 59.4
Current: 42.54
STR's Operating Margin % is ranked better than 89.93% of 973
companies
in the Oil & Gas industry
Industry Median: 8.17
vs STR: 42.54
Sitio Royalties's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Sitio Royalties's Operating Income for the
three
months ended in Dec. 2023 was $68.9 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $252.4 Mil.
Sitio Royalties Operating Margin % Historical Data
The historical data trend for Sitio Royalties'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.
Sitio Royalties Annual Data
Trend
Dec20
Dec21
Dec22
Dec23
Operating Margin %
-7.04
49.10
59.40
42.54
Sitio Royalties Quarterly Data
Dec20
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Operating Margin %
44.58
47.33
35.29
40.81
46.14
Competitive Comparison
For the Oil & Gas E&P subindustry, Sitio Royalties'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.
Sitio Royalties Operating Margin % Distribution
For the Oil & Gas industry and Energy sector, Sitio Royalties's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sitio Royalties's Operating Margin % falls into.
Sitio Royalties 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.
Sitio Royalties's Operating Margin % for the fiscal year that ended in Dec. 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.
Sitio Royalties Operating Margin % Related Terms
Thank you for viewing the detailed overview of Sitio Royalties's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sitio Royalties (Sitio Royalties) Business Description
Sitio Royalties Corp is a pure-play mineral and royalty company. The group focuses on investing in mineral and royalty interests in the Permian and other productive U.S. oil basins.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
STR has been successfully added to your 