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Yokogawa Electric (TSE:6841) Operating Margin % : 17.80% (As of Dec. 2023)


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What is Yokogawa Electric Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Yokogawa Electric's Operating Income for the three months ended in Dec. 2023 was 円24,674 Mil. Yokogawa Electric's Revenue for the three months ended in Dec. 2023 was 円138,591 Mil. Therefore, Yokogawa Electric's Operating Margin % for the quarter that ended in Dec. 2023 was 17.80%.

Good Sign:

Yokogawa Electric Corp operating margin is expanding. Margin expansion is usually a good sign.

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

TSE:6841' s Operating Margin % Range Over the Past 10 Years
Min: 7.35   Med: 8.51   Max: 14.59
Current: 14.59


TSE:6841's Operating Margin % is ranked better than
81.15% of 2966 companies
in the Industrial Products industry
Industry Median: 6.9 vs TSE:6841: 14.59

Yokogawa Electric's 5-Year Average Operating Margin % Growth Rate was 8.60% per year.

Yokogawa Electric's Operating Income for the three months ended in Dec. 2023 was 円24,674 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was 円78,800 Mil.


Yokogawa Electric Operating Margin % Historical Data

The historical data trend for Yokogawa Electric'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.

Yokogawa Electric Operating Margin % Chart

Yokogawa Electric Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.80 8.44 7.87 9.73 14.59

Yokogawa Electric Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 14.15 11.02 15.19 17.80 13.88

Competitive Comparison of Yokogawa Electric's Operating Margin %

For the Specialty Industrial Machinery subindustry, Yokogawa Electric'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.


Yokogawa Electric's Operating Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Yokogawa Electric's Operating Margin % distribution charts can be found below:

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



Yokogawa Electric 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.

Yokogawa Electric's Operating Margin % for the fiscal year that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=78800 / 540152
=14.59 %

Yokogawa Electric'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 )
=24674 / 138591
=17.80 %

* 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.


Yokogawa Electric  (TSE:6841) 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.


Yokogawa Electric Operating Margin % Related Terms

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Yokogawa Electric (TSE:6841) Business Description

Traded in Other Exchanges
Address
2-9-32 Nakacho, Musashino-shi, Tokyo, JPN, 180-8750
Yokogawa Electric Corporation offers systems and solutions for measurement, control, and information technologies. Software, data acquisition instruments, field instruments, and other components compose a diverse product portfolio and allow the company to reach various customers involved in different end-markets. Essentially, the company helps link plant operations and corporate management. It has three business segments: industrial automation (majority of total revenue), control, test and measurement, and aviation and other businesses. In addition to its product offerings, Yokogawa offers consulting and execution services to supply customers with resources to make timely operating decisions. The majority of sales derive from Asia, with Japan being a key region for the company.

Yokogawa Electric (TSE:6841) Headlines

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