Operating Margin % is calculated as Operating Income divided by its Revenue. TE Connectivity's Operating Income for the
three
months ended in Sep. 2023 was $699 Mil. TE Connectivity's Revenue for the
three
months ended in Sep. 2023 was $4,035 Mil. Therefore, TE Connectivity's Operating Margin % for the quarter that ended in Sep. 2023 was 17.32%.
Good Sign:
TE Connectivity Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for TE Connectivity's Operating Margin % or its related term are showing as below:
TEL'
s Operating Margin % Range Over the Past 10 Years
Min: 14.21 Med: 16.68 Max: 18.08
Current: 16.7
TEL's Operating Margin % is ranked better than 89.59% of 2458
companies
in the Hardware industry
Industry Median: 3.97
vs TEL: 16.70
TE Connectivity's 5-Year Average Operating Margin % Growth Rate was 0.50% per year.
TE Connectivity's Operating Income for the
three
months ended in Sep. 2023 was $699 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $2,677 Mil.
TE Connectivity Operating Margin % Historical Data
The historical data trend for TE Connectivity'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.
TE Connectivity Annual Data
Trend
Sep14
Sep15
Sep16
Sep17
Sep18
Sep19
Sep20
Sep21
Sep22
Sep23
Operating Margin %
16.81
14.21
18.08
18.07
16.70
TE Connectivity Quarterly Data
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Operating Margin %
17.39
16.19
15.96
17.31
17.32
Competitive Comparison
For the Electronic Components subindustry, TE Connectivity'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.
TE Connectivity Operating Margin % Distribution
For the Hardware industry and Technology sector, TE Connectivity's Operating Margin % distribution charts can be found below:
* The bar in red indicates where TE Connectivity's Operating Margin % falls into.
TE Connectivity 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.
TE Connectivity's Operating Margin % for the fiscal year that ended in Sep. 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.
TE Connectivity (NYSE:TEL) 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 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.
TE Connectivity Operating Margin % Related Terms
Thank you for viewing the detailed overview of TE Connectivity's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.
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