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DEO (Diageo) Operating Margin % : 28.84% (As of Jun. 2024)


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What is Diageo Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Diageo's Operating Income for the six months ended in Jun. 2024 was $2,684 Mil. Diageo's Revenue for the six months ended in Jun. 2024 was $9,307 Mil. Therefore, Diageo's Operating Margin % for the quarter that ended in Jun. 2024 was 28.84%.

Warning Sign:

Diageo PLC operating margin has been in a 5-year decline. The average rate of decline per year is -1.7%.

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

DEO' s Operating Margin % Range Over the Past 10 Years
Min: 25.87   Med: 29.42   Max: 31.41
Current: 29.61


DEO's Operating Margin % is ranked better than
91.55% of 213 companies
in the Beverages - Alcoholic industry
Industry Median: 8.06 vs DEO: 29.61

Diageo's 5-Year Average Operating Margin % Growth Rate was -1.70% per year.

Diageo's Operating Income for the six months ended in Jun. 2024 was $2,684 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was $6,001 Mil.


Diageo Operating Margin % Historical Data

The historical data trend for Diageo'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.

Diageo Operating Margin % Chart

Diageo Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.68 29.30 28.74 26.99 29.61

Diageo Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 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 22.45 33.55 19.25 30.26 28.84

Competitive Comparison of Diageo's Operating Margin %

For the Beverages - Wineries & Distilleries subindustry, Diageo'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.


Diageo's Operating Margin % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Diageo's Operating Margin % distribution charts can be found below:

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



Diageo 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.

Diageo's Operating Margin % for the fiscal year that ended in Jun. 2024 is calculated as

Operating Margin %=Operating Income (A: Jun. 2024 ) / Revenue (A: Jun. 2024 )
=6001 / 20269
=29.61 %

Diageo'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 )
=2684 / 9307
=28.84 %

* 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.


Diageo  (NYSE:DEO) 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.


Diageo Operating Margin % Related Terms

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


Diageo Business Description

Address
16 Great Marlborough Street, London, GBR, W1F 7HS
The product of a merger between Grand Metropolitan and Guinness in 1997, Diageo is one of the world's leading producers of branded premium spirits, approximately level with Kweichow Moutai in revenue terms. It also produces and markets beer and wine. Brands include Johnnie Walker blended scotch, Smirnoff vodka, Crown Royal Canadian whiskey, Captain Morgan rum, Casamigos tequila, Tanqueray gin, Baileys Irish Cream, and Guinness stout. Diageo also owns 34% of premium champagne and cognac maker Moet Hennessy, a subsidiary of French luxury goods maker LVMH Moet Hennessy-Louis Vuitton, and a near-56% stake in India's United Spirits.

Diageo Headlines

From GuruFocus

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