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Isuzu Motors (TSE:7202) Operating Margin %

: 12.21% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Isuzu Motors's Operating Income for the three months ended in Dec. 2023 was 円110,366 Mil. Isuzu Motors's Revenue for the three months ended in Dec. 2023 was 円903,553 Mil. Therefore, Isuzu Motors's Operating Margin % for the quarter that ended in Dec. 2023 was 12.21%.

Warning Sign:

Isuzu Motors Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.9%.

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

TSE:7202' s Operating Margin % Range Over the Past 10 Years
Min: 5.02   Med: 8   Max: 9.9
Current: 9.11


TSE:7202's Operating Margin % is ranked better than
74.12% of 1283 companies
in the Vehicles & Parts industry
Industry Median: 5.07 vs TSE:7202: 9.11

Isuzu Motors's 5-Year Average Operating Margin % Growth Rate was -1.90% per year.

Isuzu Motors's Operating Income for the three months ended in Dec. 2023 was 円110,366 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was 円309,228 Mil.


Isuzu Motors Operating Margin % Historical Data

The historical data trend for Isuzu Motors'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.

Isuzu Motors Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.23 6.76 5.02 7.45 7.93

Isuzu Motors Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 10.07 6.54 8.85 8.65 12.21

Competitive Comparison

For the Auto Manufacturers subindustry, Isuzu Motors'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.


Isuzu Motors Operating Margin % Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Isuzu Motors's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Isuzu Motors's Operating Margin % falls into.



Isuzu Motors 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.

Isuzu Motors's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=253551 / 3195537
=7.93 %

Isuzu Motors'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 )
=110366 / 903553
=12.21 %

* 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.


Isuzu Motors  (TSE:7202) 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.


Isuzu Motors Operating Margin % Related Terms

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Isuzu Motors (TSE:7202) Business Description

Traded in Other Exchanges
Address
26-1, Minami-oi 6-chrome, Shinagawa-ku, Tokyo, JPN, 140-8722
Isuzu Motors is a Japanese automobile manufacturing company focused on the production of commercial vehicles, passenger vehicles, and diesel engines. The company primarily manufactures light- to heavy-duty trucks, buses, pickup trucks, and industrial diesel engines. Isuzu derives the vast majority of revenue from vehicle sales. While Isuzu conducts sales across the globe, by individual country, Japan contributes the largest portion of consolidated revenue, followed by Thailand. The company mainly conducts manufacturing operations domestically.

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