Operating Margin % is calculated as Operating Income divided by its Revenue. Zoom Video Communications's Operating Income for the
three
months ended in Jul. 2023 was $178 Mil. Zoom Video Communications's Revenue for the
three
months ended in Jul. 2023 was $1,139 Mil. Therefore, Zoom Video Communications's Operating Margin % for the quarter that ended in Jul. 2023 was 15.60%.
The historical rank and industry rank for Zoom Video Communications's Operating Margin % or its related term are showing as below:
ZM'
s Operating Margin % Range Over the Past 10 Years
Min: -3.19 Med: 3.82 Max: 25.94
Current: 2.78
ZM's Operating Margin % is ranked better than 50% of 2778
companies
in the Software industry
Industry Median: 2.77
vs ZM: 2.78
Zoom Video Communications's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Zoom Video Communications's Operating Income for the
three
months ended in Jul. 2023 was $178 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2023 was $124 Mil.
Zoom Video Communications Operating Margin % Historical Data
The historical data trend for Zoom Video Communications'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.
Zoom Video Communications Annual Data
Trend
Jan17
Jan18
Jan19
Jan20
Jan21
Jan22
Jan23
Operating Margin %
1.87
2.04
24.89
25.94
5.59
Zoom Video Communications Quarterly Data
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Jul23
Operating Margin %
11.07
6.04
-11.62
0.88
15.60
Competitive Comparison
For the Software - Application subindustry, Zoom Video Communications'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.
Zoom Video Communications Operating Margin % Distribution
For the Software industry and Technology sector, Zoom Video Communications's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zoom Video Communications's Operating Margin % falls in comparison to its industry or sector. The grey bar indicates the Operating Margin %'s extreme value range as defined by GuruFocus.
Zoom Video Communications 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.
Zoom Video Communications's Operating Margin % for the fiscal year that ended in Jan. 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.
Zoom Video Communications (NAS:ZM) 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.
Zoom Video Communications Operating Margin % Related Terms
Thank you for viewing the detailed overview of Zoom Video Communications's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Zoom Video Communications (NAS:ZM) Business Description
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
1.61(2.36%) Volume: 2,530,018 11:08PM EDT
Email Alerts
Stock PDF
RSS
Website
Filings
Download
Manual of Stocks™ Web APP
ZM has been successfully added to your 
