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SAP SE Operating Margin %

: 18.06% (As of Sep. 2021)
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Operating Margin % is calculated as Operating Income divided by its Revenue. SAP SE's Operating Income for the three months ended in Sep. 2021 was €1,236 Mil. SAP SE's Revenue for the three months ended in Sep. 2021 was €6,845 Mil. Therefore, SAP SE's Operating Margin % for the quarter that ended in Sep. 2021 was 18.06%.

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

XTER:SAP' s Operating Margin % Range Over the Past 10 Years
Min: 17.29   Med: 23.83   Max: 29.18
Current: 17.29

17.29
29.18

XTER:SAP's Operating Margin % is ranked higher than
84% of the 2511 Companies
in the Software industry.

( Industry Median: 3.90 vs. XTER:SAP: 17.29 )

SAP SE's 5-Year Average Operating Margin % Growth Rate was -0.50% per year.

SAP SE's Operating Income for the three months ended in Sep. 2021 was €1,236 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2021 was €4,815 Mil.


SAP SE Operating Margin % Historical Data

The historical data trend for SAP SE'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.

SAP SE Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.57 23.16 20.34 24.22 16.74

SAP SE Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21
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 35.15 17.61 14.86 18.06 18.42

Competitive Comparison

For the Software - Application subindustry, SAP SE'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.

   

SAP SE Operating Margin % Distribution

For the Software industry and Technology sector, SAP SE's Operating Margin % distribution charts can be found below:

* The bar in red indicates where SAP SE's Operating Margin % falls into.



SAP SE 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.

SAP SE's Operating Margin % for the fiscal year that ended in Dec. 2020 is calculated as

Operating Margin %=Operating Income (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=6621 / 27338
=24.22 %

SAP SE's Operating Margin % for the quarter that ended in Sep. 2021 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2021 ) / Revenue (Q: Sep. 2021 )
=1236 / 6845
=18.06 %

* 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.


SAP SE  (XTER:SAP) 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.


SAP SE Operating Margin % Related Terms

Thank you for viewing the detailed overview of SAP SE's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


SAP SE Business Description

SAP SE logo
Industry
Technology » Software NAICS : 541512 SIC : 7371
Address
Dietmar-Hopp-Allee 16, Walldorf, BW, DEU, 69190
Founded in 1972 by former IBM employees, SAP provides database technology and enterprise resource planning software to enterprises around the world. Across more than 180 countries, the company serves 440,000 customers, approximately 80% of which are small to medium-size enterprises.

SAP SE Headlines

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