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Marks Electrical Group (LSE:MRK) Operating Margin % : 2.51% (As of Sep. 2023)


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What is Marks Electrical Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Marks Electrical Group's Operating Income for the six months ended in Sep. 2023 was £1.4 Mil. Marks Electrical Group's Revenue for the six months ended in Sep. 2023 was £53.9 Mil. Therefore, Marks Electrical Group's Operating Margin % for the quarter that ended in Sep. 2023 was 2.51%.

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

LSE:MRK' s Operating Margin % Range Over the Past 10 Years
Min: 2.27   Med: 6.07   Max: 12.07
Current: 4.85


LSE:MRK's Operating Margin % is ranked better than
57.19% of 1112 companies
in the Retail - Cyclical industry
Industry Median: 3.565 vs LSE:MRK: 4.85

Marks Electrical Group's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Marks Electrical Group's Operating Income for the six months ended in Sep. 2023 was £1.4 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was £5.3 Mil.


Marks Electrical Group Operating Margin % Historical Data

The historical data trend for Marks Electrical Group'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.

Marks Electrical Group Operating Margin % Chart

Marks Electrical Group Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
4.50 2.27 12.07 7.84 6.07

Marks Electrical Group Semi-Annual Data
Mar19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Operating Margin % Get a 7-Day Free Trial Premium Member Only 7.22 8.38 4.71 7.15 2.51

Competitive Comparison of Marks Electrical Group's Operating Margin %

For the Internet Retail subindustry, Marks Electrical Group'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.


Marks Electrical Group's Operating Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Marks Electrical Group's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Marks Electrical Group's Operating Margin % falls into.



Marks Electrical Group 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.

Marks Electrical Group's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=5.938 / 97.754
=6.07 %

Marks Electrical Group's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=1.353 / 53.858
=2.51 %

* 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.


Marks Electrical Group  (LSE:MRK) 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.


Marks Electrical Group Operating Margin % Related Terms

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


Marks Electrical Group (LSE:MRK) Business Description

Traded in Other Exchanges
N/A
Address
4 Boston Road, Leicester, GBR, LE4 1AU
Marks Electrical Group PLC sells, delivers, installs, and recycles a wide range of household electrical products. Primarily through its retail website - markselectrical.co.uk, the company offers over 3,000 products from over fifty brands across its main product categories, which include Cooking, Refrigeration, Washers & Dryers, Dishwashers and Audio-Visual. These products are sourced from UK distributors of the brands, with whom the group maintains strong and direct relationships. Delivery to customers is operated by its own skilled team of delivery drivers in its owned and branded vehicles, who are also able to offer installation and recycling services.

Marks Electrical Group (LSE:MRK) Headlines

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