Altera (FRA:ALR) Operating Margin % : 22.07% (As of Sep. 2015)

View and export this data going back to . Start your Free Trial

What is Altera Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Altera's Operating Income for the three months ended in Sep. 2015 was €79 Mil. Altera's Revenue for the three months ended in Sep. 2015 was €356 Mil. Therefore, Altera's Operating Margin % for the quarter that ended in Sep. 2015 was 22.07%.

Warning Sign:

Altera Corp operating margin has been in 5-year decline. The average rate of decline per year is -3.3%.

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

FRA:ALR' s Operating Margin % Range Over the Past 10 Years
Min: 22.29 Med: 28.4 Max: 44.43
Current: 23.04

FRA:ALR's Operating Margin % is not ranked
in the Semiconductors industry.
Industry Median: 4.54 vs FRA:ALR: 23.04

Altera's 5-Year Average Operating Margin % Growth Rate was -3.30% per year.

Altera's Operating Income for the three months ended in Sep. 2015 was €79 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2015 was €349 Mil.

Altera Operating Margin % Historical Data

The historical data trend for Altera'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.

Altera Operating Margin % Chart

Altera Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Operating Margin %

Get a 7-Day Free Trial

44.43

41.13

33.16

27.46

28.12

Altera Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
Operating Margin %	Get a 7-Day Free Trial															28.29	25.19	23.66	20.84	22.07

Competitive Comparison of Altera's Operating Margin %

For the Semiconductors subindustry, Altera'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.

Altera's Operating Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Altera's Operating Margin % distribution charts can be found below:

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

Altera 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.

Altera's Operating Margin % for the fiscal year that ended in Dec. 2014 is calculated as

Operating Margin %	=	Operating Income (A: Dec. 2014 )	/	Revenue (A: Dec. 2014 )
	=	440.665	/	1566.924
	=	28.12 %

Altera's Operating Margin % for the quarter that ended in Sep. 2015 is calculated as

Operating Margin %	=	Operating Income (Q: Sep. 2015 )	/	Revenue (Q: Sep. 2015 )
	=	78.571	/	356.014
	=	22.07 %

Altera (FRA:ALR) 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 Nokias 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.

Altera Operating Margin % Related Terms

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

Altera (FRA:ALR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Altera Corp (FRA:ALR) » Definitions » Operating Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.altera.com

Altera Corp was founded in 1983 and reincorporated in the State of Delaware in 1997. It designs and sells programmable logic devices, HardCopy application-specific integrated circuit devices, power system-on-chip devices, pre-defined design building blocks known as intellectual property cores, and associated development tools. Its PLDs, which consist of field-programmable gate arrays, including those referred to as systems-on-chip FPGAs which incorporate hard embedded processor cores, and complex programmable logic devices. FPGAs and CPLDs are standard semiconductor integrated circuits that are manufactured as standard chips that its customers program to perform desired logic and processing functions within their electronic systems. With its HardCopy devices it offers its customers a migration path from a PLD to a low-cost, high-volume, non-programmable implementation of their designs. Its customers can license IP cores for implementation of standard functions in their PLD designs. Customers develop, compile, and verify their PLD designs, and then program their designs into its PLDs using its proprietary development software, which operates on personal computers and engineering workstations. Its products serve a range of customers within the Telecom and Wireless, Industrial Automation, Military and Automotive, Networking, Computer and Storage and Other vertical markets. Its geographical segments include US, Japan, China, Europe and Other. Its customers design electronic systems that typically use three types of digital integrated circuits: Processors, which include microprocessors, microcontrollers, graphics processors, and digital signal processors, control central computing tasks and signal processing; Memory stores programming instructions and data; and Logic manages the interchange and manipulation of digital signals within a system. It classifies its products into three categories: New, Mainstream, and Mature and Other Products. New Products include the Stratix V, Stratix IV, Arria 10, Arria V, Arria II, Cyclone V, Cyclone IV, MAX 10 FPGAs, MAX V CPLDs, HardCopy IV devices and Enpirion PowerSoCs. Mainstream Products include the Stratix III, Cyclone III, MAX II and HardCopy III devices. Mature and Other Products include the Stratix II, Stratix, Arria GX, Cyclone II, Cyclone, Classic, MAX 3000A, MAX 7000, MAX 7000A, MAX 7000B, MAX 7000S, MAX 9000, HardCopy II, HardCopy, FLEXseries, APEX series, Mercury, Excalibur devices, configuration and other devices, intellectual property cores, and software and other tools. The Company competes with PLD vendors such as Lattice Semiconductor Corporation, Microsemi Corporation, and Xilinx Inc. Other semiconductor companies with whom it may compete includes Analog Devices Inc., Atmel Corporation, Avago Technologies, Broadcom Corporation, Cavium, Inc., Freescale Semiconductor Inc., GlobalFoundries Inc., HiSilicon Technologies Company, Intel Corporation ("Intel"), Linear Technology Corporation