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WuXi PharmaTech (Cayman) (WuXi PharmaTech (Cayman)) Operating Margin % : 12.09% (As of Sep. 2015)


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What is WuXi PharmaTech (Cayman) Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. WuXi PharmaTech (Cayman)'s Operating Income for the three months ended in Sep. 2015 was $25.8 Mil. WuXi PharmaTech (Cayman)'s Revenue for the three months ended in Sep. 2015 was $213.6 Mil. Therefore, WuXi PharmaTech (Cayman)'s Operating Margin % for the quarter that ended in Sep. 2015 was 12.09%.

The historical rank and industry rank for WuXi PharmaTech (Cayman)'s Operating Margin % or its related term are showing as below:


WX's Operating Margin % is not ranked *
in the Medical Diagnostics & Research industry.
Industry Median: -5.15
* Ranked among companies with meaningful Operating Margin % only.

WuXi PharmaTech (Cayman)'s 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

WuXi PharmaTech (Cayman)'s Operating Income for the three months ended in Sep. 2015 was $25.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2015 was $84.4 Mil.


WuXi PharmaTech (Cayman) Operating Margin % Historical Data

The historical data trend for WuXi PharmaTech (Cayman)'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.

WuXi PharmaTech (Cayman) Operating Margin % Chart

WuXi PharmaTech (Cayman) Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.40 20.58 17.89 18.21 15.38

WuXi PharmaTech (Cayman) Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 15.99 12.88 9.44 8.78 12.09

Competitive Comparison of WuXi PharmaTech (Cayman)'s Operating Margin %

For the Diagnostics & Research subindustry, WuXi PharmaTech (Cayman)'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.


WuXi PharmaTech (Cayman)'s Operating Margin % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, WuXi PharmaTech (Cayman)'s Operating Margin % distribution charts can be found below:

* The bar in red indicates where WuXi PharmaTech (Cayman)'s Operating Margin % falls into.



WuXi PharmaTech (Cayman) 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.

WuXi PharmaTech (Cayman)'s Operating Margin % for the fiscal year that ended in Dec. 2014 is calculated as

Operating Margin %=Operating Income (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=103.728 / 674.279
=15.38 %

WuXi PharmaTech (Cayman)'s Operating Margin % for the quarter that ended in Sep. 2015 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=25.821 / 213.642
=12.09 %

* 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.


WuXi PharmaTech (Cayman)  (NYSE:WX) 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.


WuXi PharmaTech (Cayman) Operating Margin % Related Terms

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WuXi PharmaTech (Cayman) (WuXi PharmaTech (Cayman)) Business Description

Traded in Other Exchanges
N/A
Address
WuXi PharmaTech (Cayman) Inc was incorporated on March 16, 2007 and commenced operations and began offering pharmaceutical and biotechnology R&D outsourcing services in 2001. The Company is a pharmaceutical, biotechnology and medical device R&D services company, with operations in China and the United States. It provides a portfolio of laboratory and manufacturing services throughout the drug and medical device R&D process to its customers, which includes pharmaceutical, biotechnology and medical device companies. Its services are designed to assist its customers in shortening the cycle and lowering the cost of pharmaceutical and medical device R&D by providing cost-effective and efficient outsourcing solutions. Its primary China-based facilities include 1,127,000 square feet of facilities in the China (Shanghai) Pilot Free Trade Zone used for synthetic chemistry, biology, medicinal chemistry, DMPK, formulation, analytical development, manufacturing process chemistry, research manufacturing, bioanalytical services, genomics, and biologics drug discovery and development; an R&D center in Tianjin engaged in synthetic chemistry and medicinal chemistry; a facility in Wuhan providing services in synthetic chemistry and medicinal chemistry; a small-scale cGMP clinical manufacturing facility and a large-scale cGMP commercial manufacturing plant in the Jinshan district of Shanghai; a large-scale non-GMP manufacturing plant in Changzhou; a preclinical toxicology facility in Suzhou; a laboratory for manufacturing research reagents in Suzhou; and a biologics manufacturing facility in Wuxi. It also offers services in biologics and medical device testing in three FDA-registered facilities in the United States. The Company has two segments: Laboratory services and Manufacturing services. Laboratory services are provided for pharmaceutical, biotechnology and medical device companies. China-based laboratory services for pharmaceutical and biotechnology companies include services for small molecules, such as synthetic chemistry, biology, medicinal chemistry, DMPK/ADME, formulation, analytical chemistry, toxicology, clinical development, bioanalytical services, genomics, research reagent production, and clinical services, as well as services for discovery and development of biologics. U.S.-based laboratory services include testing services for biologics, medical devices, and combination products. Manufacturing services include the development of manufacturing processes and the production of intermediates and active pharmaceutical ingredients, or APIs, for use by pharmaceutical companies in preclinical and clinical trials of small-molecule products and in commercial products, as well as the production of biologics. The Company offers testing and development services to ensure that a medical device is manufactured, packaged and sterilized in accordance with GMP guidelines. Its in vivo and in vitro toxicology testing includes biocompatibility or safe

WuXi PharmaTech (Cayman) (WuXi PharmaTech (Cayman)) Headlines

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Baron Funds Comments on WuXi PharmaTech

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