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Lifeline Scientific (LSE:LSI) Operating Margin % : 11.11% (As of Jun. 2016)


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What is Lifeline Scientific Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Lifeline Scientific's Operating Income for the six months ended in Jun. 2016 was £1.42 Mil. Lifeline Scientific's Revenue for the six months ended in Jun. 2016 was £12.80 Mil. Therefore, Lifeline Scientific's Operating Margin % for the quarter that ended in Jun. 2016 was 11.11%.

Good Sign:

Lifeline Scientific Inc operating margin is expanding. Margin expansion is usually a good sign.

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

LSE:LSI' s Operating Margin % Range Over the Past 10 Years
Min: -130.73   Med: 6.82   Max: 19.55
Current: 17.75


LSE:LSI's Operating Margin % is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 1.44 vs LSE:LSI: 17.75

Lifeline Scientific's 5-Year Average Operating Margin % Growth Rate was 2.60% per year.

Lifeline Scientific's Operating Income for the six months ended in Jun. 2016 was £1.42 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2016 was £5.16 Mil.


Lifeline Scientific Operating Margin % Historical Data

The historical data trend for Lifeline Scientific'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.

Lifeline Scientific Operating Margin % Chart

Lifeline Scientific Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.45 0.42 5.85 6.82 14.55

Lifeline Scientific Semi-Annual Data
Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16
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 -0.06 11.99 0.90 22.97 11.11

Competitive Comparison of Lifeline Scientific's Operating Margin %

For the Medical Devices subindustry, Lifeline Scientific'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.


Lifeline Scientific's Operating Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Lifeline Scientific's Operating Margin % distribution charts can be found below:

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



Lifeline Scientific 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.

Lifeline Scientific's Operating Margin % for the fiscal year that ended in Dec. 2015 is calculated as

Operating Margin %=Operating Income (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=3.829 / 26.31
=14.55 %

Lifeline Scientific's Operating Margin % for the quarter that ended in Jun. 2016 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=1.423 / 12.804
=11.11 %

* 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.


Lifeline Scientific  (LSE:LSI) 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.


Lifeline Scientific Operating Margin % Related Terms

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Lifeline Scientific (LSE:LSI) Business Description

Traded in Other Exchanges
N/A
Address
Lifeline Scientific Inc was incorporated on October 1, 1998. The Company is in the business of delivering, to targeted medical markets, a portfolio of related proprietary technologies, which include devices, solutions, and protocols designed to maximize the use and availability of organs, tissues, and cells. It serves the kidney transplant market today with its LifePort product line, and also sells solutions to service the broader organ transplant industry. The Company operates in North America, Brazil, China and Rest of World.