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African Sun (XZIM:ASUN.ZW) Operating Margin % : 21.31% (As of Dec. 2022)


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What is African Sun Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. African Sun's Operating Income for the six months ended in Dec. 2022 was ZWL4,978 Mil. African Sun's Revenue for the six months ended in Dec. 2022 was ZWL23,363 Mil. Therefore, African Sun's Operating Margin % for the quarter that ended in Dec. 2022 was 21.31%.

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


XZIM:ASUN.ZW's Operating Margin % is not ranked *
in the Travel & Leisure industry.
Industry Median: 8.315
* Ranked among companies with meaningful Operating Margin % only.

African Sun's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

African Sun's Operating Income for the six months ended in Dec. 2022 was ZWL4,978 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2022 was ZWL6,390 Mil.


African Sun Operating Margin % Historical Data

The historical data trend for African Sun'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.

African Sun Operating Margin % Chart

African Sun Annual Data
Trend Sep09 Sep11 Sep12 Dec18 Dec19 Dec20 Dec21 Dec22
Operating Margin %
Get a 7-Day Free Trial 21.27 36.98 -22.77 -1.15 20.08

African Sun Semi-Annual Data
Sep09 Mar11 Sep11 Mar12 Sep12 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22
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 -21.13 -15.11 2.90 16.71 21.31

Competitive Comparison of African Sun's Operating Margin %

For the Lodging subindustry, African Sun'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.


African Sun's Operating Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, African Sun's Operating Margin % distribution charts can be found below:

* The bar in red indicates where African Sun's Operating Margin % falls into.



African Sun 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.

African Sun'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 )
=6390.323 / 31816.917
=20.08 %

African Sun's Operating Margin % for the quarter that ended in Dec. 2022 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2022 ) / Revenue (Q: Dec. 2022 )
=4977.542 / 23362.836
=21.31 %

* 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.


African Sun  (XZIM:ASUN.ZW) 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.


African Sun Operating Margin % Related Terms

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African Sun (XZIM:ASUN.ZW) Business Description

Traded in Other Exchanges
N/A
Address
870 Endeavour Crescent off Norfolk Road, Bally House, P.O. Box CY 1211, Mount Pleasant Business Park, Causeway, Harare, ZWE
African Sun Ltd is a hotel investment company. It manages hotel operations in Zimbabwe. The company has five segments namely, Resort Hotels, City and Country Hotels, Victoria Falls Hotel Partnership, Sun Leisure and Real Estate and Others. It generates the majority of its revenue from the City and Country Hotels segment.

African Sun (XZIM:ASUN.ZW) Headlines

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