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Fukuoka REIT (TSE:8968) Operating Margin % : 36.32% (As of Aug. 2023)


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What is Fukuoka REIT Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Fukuoka REIT's Operating Income for the six months ended in Aug. 2023 was 円3,373 Mil. Fukuoka REIT's Revenue for the six months ended in Aug. 2023 was 円9,285 Mil. Therefore, Fukuoka REIT's Operating Margin % for the quarter that ended in Aug. 2023 was 36.32%.

Good Sign:

Fukuoka REIT Corp operating margin is expanding. Margin expansion is usually a good sign.

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

TSE:8968' s Operating Margin % Range Over the Past 10 Years
Min: 35.26   Med: 36.21   Max: 42.04
Current: 36.72


TSE:8968's Operating Margin % is ranked worse than
68.36% of 689 companies
in the REITs industry
Industry Median: 52.06 vs TSE:8968: 36.72

Fukuoka REIT's 5-Year Average Operating Margin % Growth Rate was 0.20% per year.

Fukuoka REIT's Operating Income for the six months ended in Aug. 2023 was 円3,373 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Aug. 2023 was 円6,835 Mil.


Fukuoka REIT Operating Margin % Historical Data

The historical data trend for Fukuoka 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.

Fukuoka REIT Operating Margin % Chart

Fukuoka REIT Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.86 35.29 35.26 36.41 36.00

Fukuoka REIT Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 36.79 36.03 35.67 36.32 37.12

Competitive Comparison of Fukuoka REIT's Operating Margin %

For the REIT - Diversified subindustry, Fukuoka 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.


Fukuoka REIT's Operating Margin % Distribution in the REITs Industry

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

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



Fukuoka 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.

Fukuoka REIT's Operating Margin % for the fiscal year that ended in Aug. 2023 is calculated as

Operating Margin %=Operating Income (A: Aug. 2023 ) / Revenue (A: Aug. 2023 )
=6596.298 / 18322.064
=36.00 %

Fukuoka REIT's Operating Margin % for the quarter that ended in Aug. 2023 is calculated as

Operating Margin %=Operating Income (Q: Aug. 2023 ) / Revenue (Q: Aug. 2023 )
=3372.637 / 9284.701
=36.32 %

* 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.


Fukuoka REIT  (TSE:8968) 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.


Fukuoka REIT Operating Margin % Related Terms

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Fukuoka REIT (TSE:8968) Business Description

Traded in Other Exchanges
N/A
Address
1-2-25 Sumiyoshi, Hakata, Fukuoka, JPN, 812-0018
Fukuoka REIT Corp is an REIT based in Japan. The company manages a portfolio with a focus on entertainment retail facilities and office buildings in the Fukuoka metropolitan area and other neighbouring areas in the Kyushu region. Fukuoka REIT's asset manager, Fukuoka Realty, provides real estate management, acquisition, arrangement of new property, fundraising, and other operations under contracts. The firm diversifies in retail, office buildings, and other types of property, including residences, hotels, logistics facilities, and public and other facilities. Retail property represents more than half of the portfolio assets.

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