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National for Tourism Hotels (ADX:NCTH) Operating Margin % : 10.73% (As of Dec. 2023)


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What is National for Tourism Hotels Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. National for Tourism Hotels's Operating Income for the six months ended in Dec. 2023 was د.إ71.8 Mil. National for Tourism Hotels's Revenue for the six months ended in Dec. 2023 was د.إ669.2 Mil. Therefore, National for Tourism Hotels's Operating Margin % for the quarter that ended in Dec. 2023 was 10.73%.

Warning Sign:

National Corp for Tourism Hotels operating margin has been in a 5-year decline. The average rate of decline per year is -5%.

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

ADX:NCTH' s Operating Margin % Range Over the Past 10 Years
Min: 8.93   Med: 12.43   Max: 18.02
Current: 10.73


ADX:NCTH's Operating Margin % is ranked better than
58.78% of 820 companies
in the Travel & Leisure industry
Industry Median: 8.34 vs ADX:NCTH: 10.73

National for Tourism Hotels's 5-Year Average Operating Margin % Growth Rate was -5.00% per year.

National for Tourism Hotels's Operating Income for the six months ended in Dec. 2023 was د.إ71.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was د.إ71.8 Mil.


National for Tourism Hotels Operating Margin % Historical Data

The historical data trend for National for Tourism Hotels'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.

National for Tourism Hotels Operating Margin % Chart

National for Tourism Hotels Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.36 9.64 9.19 8.93 10.73

National for Tourism Hotels Semi-Annual Data
Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
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 12.36 9.64 9.19 8.93 10.73

Competitive Comparison of National for Tourism Hotels's Operating Margin %

For the Lodging subindustry, National for Tourism Hotels'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.


National for Tourism Hotels's Operating Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, National for Tourism Hotels's Operating Margin % distribution charts can be found below:

* The bar in red indicates where National for Tourism Hotels's Operating Margin % falls into.



National for Tourism Hotels 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.

National for Tourism Hotels's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=71.775 / 669.204
=10.73 %

National for Tourism Hotels'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 )
=71.775 / 669.204
=10.73 %

* 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.


National for Tourism Hotels  (ADX:NCTH) 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.


National for Tourism Hotels Operating Margin % Related Terms

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National for Tourism Hotels (ADX:NCTH) Business Description

Traded in Other Exchanges
N/A
Address
Airport Road, P.O. Box 6942, Abu Dhabi, ARE
National Corp for Tourism Hotels owns, manages, and invests in hotels and leisure complexes. The company's operating segment include Hotels, Retail Services, Catering Services, and the Holding segment. Catering segment provides catering services on a contract basis. The Hotels segment provides room and food and beverages services to customers. Retail services segment provides beverages sales services to its customers. It generates maximum revenue from the Catering Services segment. Geographically, it operates only in the United Arab Emirates (UAE). It owns four hotels within the UAE: Abu Dhabi InterContinental Hotel, Danat Al Ain Resort.

National for Tourism Hotels (ADX:NCTH) Headlines

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