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VRT (Vertiv Holdings Co) Operating Margin % : 18.48% (As of Sep. 2024)


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What is Vertiv Holdings Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Vertiv Holdings Co's Operating Income for the three months ended in Sep. 2024 was $383 Mil. Vertiv Holdings Co's Revenue for the three months ended in Sep. 2024 was $2,074 Mil. Therefore, Vertiv Holdings Co's Operating Margin % for the quarter that ended in Sep. 2024 was 18.48%.

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

VRT' s Operating Margin % Range Over the Past 10 Years
Min: 4   Med: 6.57   Max: 16.15
Current: 16.15


VRT's Operating Margin % is ranked better than
84.89% of 2971 companies
in the Industrial Products industry
Industry Median: 6.9 vs VRT: 16.15

Vertiv Holdings Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Vertiv Holdings Co's Operating Income for the three months ended in Sep. 2024 was $383 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $1,216 Mil.


Vertiv Holdings Co Operating Margin % Historical Data

The historical data trend for Vertiv Holdings Co'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.

Vertiv Holdings Co Operating Margin % Chart

Vertiv Holdings Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial - 7.67 5.47 4.00 13.36

Vertiv Holdings Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 14.63 15.71 12.57 17.09 18.48

Competitive Comparison of Vertiv Holdings Co's Operating Margin %

For the Electrical Equipment & Parts subindustry, Vertiv Holdings Co'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.


Vertiv Holdings Co's Operating Margin % Distribution in the Industrial Products Industry

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

* The bar in red indicates where Vertiv Holdings Co's Operating Margin % falls into.



Vertiv Holdings Co 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.

Vertiv Holdings Co's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=916.8 / 6863.2
=13.36 %

Vertiv Holdings Co's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=383.2 / 2073.5
=18.48 %

* 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.


Vertiv Holdings Co  (NYSE:VRT) 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.


Vertiv Holdings Co Operating Margin % Related Terms

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


Vertiv Holdings Co Business Description

Traded in Other Exchanges
Address
505 North, Cleveland Avenue, Westerville, OH, USA, 43082
Vertiv Holdings Co brings together hardware, software, analytics and ongoing services to ensure its customers vital applications run continuously, perform optimally and grow with their business needs. The company solves the important challenges faced by data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Its services include critical power, thermal management, racks and enclosures, monitoring and management, and other services. Its three business segments include the Americas, Asia Pacific; and Europe, Middle East & Africa.
Executives
Karsten Winther officer: President, EMEA 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Doherty Philip O' officer: Managing Director, E+I 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Roger Fradin director C/O MSC INDUSTRIAL DIRECT CO., INC., 75 MAXESS ROAD, MELVILLE NY 11747
Yibin Edward Cui officer: President, North Asia 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Anders Karlborg officer: EVP, Man., Logistics and Op Ex 505 N. CLEVELAND AVE., WESTERVILLE OH 43082
Scott Cripps officer: Chief Accounting Officer C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Stephen Liang officer: President of Asia Pacific C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Vpe Holdings, Llc director, 10 percent owner 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Platinum Equity Partners Iii, Llc director C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Paul Ryan officer: Chief Procurement Officer 505 N. CLEVELAND AVE., WESTERVILLE OH 43082
Platinum Equity Partners Iv, L.p. director, 10 percent owner C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Platinum Equity Partners Iv, Llc director, 10 percent owner C/O PLATINUM EQUITY ADVISORS, LLC, 360 NORTH CRESCENT DRIVE, SOUTH BUILDING, BEVERLY HILLS CA 90210
Lim Cheryl H.j. officer: Chief Human Resources Officer 1050 DEARBORN DRIVE, COLUMBUS OH 43085
Joseph J Deangelo director 3100 CUMBERLAND BOULEVARD, SUITE 1700, ATLANTA GA 30339
Jakki L. Haussler director 221 EAST FOURTH STREET, CINCINNATI OH 45202