GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Ricardo PLC (STU:RIR) » Definitions » Profitability Rank

Ricardo (STU:RIR) Profitability Rank : 6 (As of Dec. 2023)


View and export this data going back to . Start your Free Trial

What is Ricardo Profitability Rank?

Ricardo has the Profitability Rank of 6.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Ricardo's Operating Margin % for the quarter that ended in Dec. 2023 was 4.24%. As of today, Ricardo's Piotroski F-Score is 4.


Competitive Comparison of Ricardo's Profitability Rank

For the Consulting Services subindustry, Ricardo's Profitability Rank, along with its competitors' market caps and Profitability Rank 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.


Ricardo's Profitability Rank Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Ricardo's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Ricardo's Profitability Rank falls into.



Ricardo Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Ricardo has the Profitability Rank of 6.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

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.

Ricardo'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 )
=11.027 / 260.242
=4.24 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Ricardo has an F-score of 4 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Ricardo PLC operating margin has been in a 5-year decline. The average rate of decline per year is -6.6%.

4. Consistency of the profitability

5. Predictability Rank


Ricardo Profitability Rank Related Terms

Thank you for viewing the detailed overview of Ricardo's Profitability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Ricardo (STU:RIR) Business Description

Traded in Other Exchanges
Address
Shoreham Technical Centre, Shoreham-by-Sea, West Sussex, GBR, BN43 5FG
Ricardo PLC is a provider of business solutions in the United Kingdom. The company's operating segments include Energy & Environment, Rail, Automotive and Industrial, Defense, and Performance Products. Its Automotive and Industrial segment generates most of the revenue for the company. The company operates in the UK, Mainland Europe, North America, China, Australia, the Rest of Asia, and the Rest of the World.

Ricardo (STU:RIR) Headlines

No Headlines