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Noble Roman's (Noble Roman's) Operating Margin % : 13.75% (As of Sep. 2023)


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What is Noble Roman's Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Noble Roman's's Operating Income for the three months ended in Sep. 2023 was $0.51 Mil. Noble Roman's's Revenue for the three months ended in Sep. 2023 was $3.74 Mil. Therefore, Noble Roman's's Operating Margin % for the quarter that ended in Sep. 2023 was 13.75%.

Warning Sign:

Noble Roman's Inc operating margin has been in a 5-year decline. The average rate of decline per year is -31.5%.

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

NROM' s Operating Margin % Range Over the Past 10 Years
Min: 2.96   Med: 26.13   Max: 39.27
Current: 16.35


NROM's Operating Margin % is ranked better than
91.67% of 348 companies
in the Restaurants industry
Industry Median: 4.375 vs NROM: 16.35

Noble Roman's's 5-Year Average Operating Margin % Growth Rate was -31.50% per year.

Noble Roman's's Operating Income for the three months ended in Sep. 2023 was $0.51 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was $2.35 Mil.


Noble Roman's Operating Margin % Historical Data

The historical data trend for Noble Roman's'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.

Noble Roman's Operating Margin % Chart

Noble Roman's Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.34 22.33 20.06 12.56 2.96

Noble Roman's Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 9.77 -11.87 46.13 17.64 13.75

Competitive Comparison of Noble Roman's's Operating Margin %

For the Restaurants subindustry, Noble Roman's'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.


Noble Roman's's Operating Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Noble Roman's's Operating Margin % distribution charts can be found below:

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



Noble Roman's 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.

Noble Roman's's Operating Margin % for the fiscal year that ended in Dec. 2022 is calculated as

Operating Margin %=Operating Income (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=0.428 / 14.453
=2.96 %

Noble Roman's'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 )
=0.514 / 3.739
=13.75 %

* 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.


Noble Roman's  (OTCPK:NROM) 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.


Noble Roman's Operating Margin % Related Terms

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


Noble Roman's (Noble Roman's) Business Description

Traded in Other Exchanges
N/A
Address
6612 E. 75th Street, Suite 450, Indianapolis, IN, USA, 46250
Noble Roman's Inc is a restaurant operator. It sells and services franchises and licenses for non-traditional foodservice operations and stand-alone locations under the trade names Noble Roman's Pizza, Noble Roman's Take-N-Bake, Noble Roman's Craft Pizza and Pub, and Tuscano's Italian Style Subs. It is known for pizza and sub sandwiches, along with other related menu items, simple operating systems, fast service times, labor-minimizing operations, attractive food costs, and overall affordability.
Executives
Bt Brands, Inc. other: 5% owner 405 MAIN AVENUE WEST, SUITE 2D, WEST FARGO ND 58078
Robert P Stiller 10 percent owner 515 N. FLAGLER DR., SUITE 1702, WEST PALM BEACH FL 33401
Marcel Herbst director 834 W. ROSCOE ST., UNIT 2, CHICAGO X1 60657
William Wildman director 101 WEST OHIO STREET, SUITE 2000, INDIANAPOLIS IN 46204
Alan Scott Mobley director, officer: President ONE VIRGINIA AVE, SUITE 800, INDIANAPOLIS IN 46204
Douglas Harold Coape-arnold director 1000 POST ROAD, SCARSDALE NY 10583
Privet Fund Lp 10 percent owner, other: See Explanation of Responses 3280 PEACHTREE ROAD NE, SUITE 2670, Atlanta GA 30305
Mitchell Grunat officer: VP of Franchise Services 2 OAK PARK CT, NOVATO CA 94945
Privet Fund Management Llc 10 percent owner, other: See Explanation of Responses 3280 PEACHTREE ROAD NE, SUITE 2670, ATLANTA GA 30305
Paul W Mobley director, 10 percent owner, officer: CEO, CFO
Ryan Levenson 10 percent owner, other: See Explanation of Responses 2396 DELLWOOD DRIVE, ATLANTA GA 30305
James Douglas Bales officer: Vice President of Operations 15727 GATESHEAD DRIVE, WESTFIELD IN 46074
Geovest Capital Partners, Lp 10 percent owner 1000 POST ROAD, SCARSDALE NY 10583
Jeffrey R Gaither director 111 MONUMENT CIRCLE, SUITE 2700, INDIANAPOLIS IN 46204
James F Basili director 536 GRAND STREET, SUITE 505, HOBOKEN NJ 07030