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Learning Tree International (FRA:LT2) Operating Margin % : 3.09% (As of Sep. 2018)


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What is Learning Tree International Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Learning Tree International's Operating Income for the three months ended in Sep. 2018 was €0.46 Mil. Learning Tree International's Revenue for the three months ended in Sep. 2018 was €14.85 Mil. Therefore, Learning Tree International's Operating Margin % for the quarter that ended in Sep. 2018 was 3.09%.

Good Sign:

Learning Tree International Inc operating margin is expanding. Margin expansion is usually a good sign.

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

FRA:LT2' s Operating Margin % Range Over the Past 10 Years
Min: -12.96   Med: -3.95   Max: 4.08
Current: -2.52


FRA:LT2's Operating Margin % is not ranked
in the Education industry.
Industry Median: 8.505 vs FRA:LT2: -2.52

Learning Tree International's 5-Year Average Operating Margin % Growth Rate was 23.40% per year.

Learning Tree International's Operating Income for the three months ended in Sep. 2018 was €0.46 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2018 was €-1.29 Mil.


Learning Tree International Operating Margin % Historical Data

The historical data trend for Learning Tree International'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.

Learning Tree International Operating Margin % Chart

Learning Tree International Annual Data
Trend Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.59 -10.21 -12.96 -1.27 -2.52

Learning Tree International Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 9.28 3.39 -17.14 -2.52 3.09

Competitive Comparison of Learning Tree International's Operating Margin %

For the Education & Training Services subindustry, Learning Tree International'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.


Learning Tree International's Operating Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Learning Tree International's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Learning Tree International's Operating Margin % falls into.



Learning Tree International 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.

Learning Tree International's Operating Margin % for the fiscal year that ended in Sep. 2018 is calculated as

Operating Margin %=Operating Income (A: Sep. 2018 ) / Revenue (A: Sep. 2018 )
=-1.388 / 55.121
=-2.52 %

Learning Tree International's Operating Margin % for the quarter that ended in Sep. 2018 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2018 ) / Revenue (Q: Sep. 2018 )
=0.459 / 14.847
=3.09 %

* 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.


Learning Tree International  (FRA:LT2) 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.


Learning Tree International Operating Margin % Related Terms

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Learning Tree International (FRA:LT2) Business Description

Traded in Other Exchanges
N/A
Address
13650 Dulles Technology Drive, Suite 400, Herndon, VA, USA, 20171
Learning Tree International Inc provides education and training in information technology. Its proprietary library of course titles focuses on client-server systems, computer networks, operating systems, databases, programming, graphical user interfaces, object-oriented technology, and IT management. Its courses are offered in hotels, conference facilities, and customer sites.

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