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APLE (Apple Hospitality REIT) Operating Margin % : 23.86% (As of Jun. 2024)


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What is Apple Hospitality REIT Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Apple Hospitality REIT's Operating Income for the three months ended in Jun. 2024 was $93 Mil. Apple Hospitality REIT's Revenue for the three months ended in Jun. 2024 was $390 Mil. Therefore, Apple Hospitality REIT's Operating Margin % for the quarter that ended in Jun. 2024 was 23.86%.

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

APLE' s Operating Margin % Range Over the Past 10 Years
Min: -17.91   Med: 19.69   Max: 21.68
Current: 19.26


APLE's Operating Margin % is ranked worse than
82.1% of 754 companies
in the REITs industry
Industry Median: 52.46 vs APLE: 19.26

Apple Hospitality REIT's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Apple Hospitality REIT's Operating Income for the three months ended in Jun. 2024 was $93 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was $268 Mil.


Apple Hospitality REIT Operating Margin % Historical Data

The historical data trend for Apple Hospitality REIT'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.

Apple Hospitality REIT Operating Margin % Chart

Apple Hospitality REIT 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 18.57 -17.91 10.09 18.64 18.84

Apple Hospitality REIT Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 22.96 21.30 14.26 16.34 23.86

Competitive Comparison of Apple Hospitality REIT's Operating Margin %

For the REIT - Hotel & Motel subindustry, Apple Hospitality REIT'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.


Apple Hospitality REIT's Operating Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Apple Hospitality REIT's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Apple Hospitality REIT's Operating Margin % falls into.



Apple Hospitality REIT 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.

Apple Hospitality REIT'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 )
=253.125 / 1343.8
=18.84 %

Apple Hospitality REIT's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=93.066 / 390.077
=23.86 %

* 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.


Apple Hospitality REIT  (NYSE:APLE) 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.


Apple Hospitality REIT Operating Margin % Related Terms

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


Apple Hospitality REIT Business Description

Traded in Other Exchanges
Address
814 East Main Street, Richmond, VA, USA, 23219
Apple Hospitality REIT Inc is a real estate investment trust that invests in income-producing real estate, majorly in the lodging sector, in the United States. It chiefly invests in upscale service hotels. All of the company's hotels operate under the Marriott or Hilton brands. Apple Hospitality has wholly-owned taxable REIT subsidiaries, which lease all of the company's hotels from wholly-owned qualified REIT subsidiaries. These hotels are managed under separate agreements with various hotel management companies that are unaffiliated with Apple Hospitality. The company derives its income from hotel revenue, its sole segment.
Executives
Redd Hugh director C/O GENERAL DYNAMICS CORPORATION, 2941 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Glade M Knight director, officer: Executive Chairman 306 E MAINS T, RICHMOND VA 23219
Bunting Glenn W Jr director 1551 NORTH TUSTIN AVENUE, SUITE 200, SANTA ANA CA 92705
Howard E. Woolley director C/O APPLE HOSPITALITY REIT, INC., 814 EAST MAIN STREET, RICHMOND VA 23219
Elizabeth Perkins officer: SVP & Chief Financial Officer C/O APPLE HOSPITALITY REIT, INC., 814 EAST MAIN STREET, RICHMOND VA 23219
Justin G Knight director, officer: CEO 10 S THIRD ST, RICHMOND VA 23219
Nelson Knight officer: President Real Estate & Invest 814 E MAIN STREET, RICHMOND VA 23219
Blythe J Mcgarvie director HANNAFORD BROS CO, 145 PLEASANT HILL RD, SCARBOROUGH ME 04074
Kristian M Gathright director 10 S THIRD ST, RICHMOND VA 23219
Carolyn B Handlon director 1555 PEACHTREE ST. NE, SUITE 1800, ATLANTA GA 30309
Jon A Fosheim director DIGITALBRIDGE GROUP, INC., 750 PARK OF COMMERCE DRIVE, SUITE 210, BOCA RATON FL 33487
Matthew Rash officer: SVP & Chief Legal Officer C/O APPLE HOSPITALITY REIT, INC., 814 EAST MAIN STREET, RICHMOND VA 23219
Rachel Labrecque officer: SVP & Chief Accounting Officer C/O APPLE HOSPITALITY REIT, INC., 814 EAST MAIN STREET, RICHMOND VA 23219
Jeanette Clarke officer: SVP Chief Cap. Invest. Officer C/O APPLE HOSPITALITY REIT, INC., 814 EAST MAIN STREET, RICHMOND VA 23219
Karen Catherine Gallagher officer: SVP & Chief Operating Officer C/O APPLE HOSPITALITY REIT, INC., 814 EAST MAIN STREET, RICHMOND VA 23219