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Ag Growth International (Ag Growth International) Operating Margin % : 7.79% (As of Mar. 2024)


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What is Ag Growth International Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Ag Growth International's Operating Income for the three months ended in Mar. 2024 was $18 Mil. Ag Growth International's Revenue for the three months ended in Mar. 2024 was $232 Mil. Therefore, Ag Growth International's Operating Margin % for the quarter that ended in Mar. 2024 was 7.79%.

Good Sign:

Ag Growth International Inc operating margin is expanding. Margin expansion is usually a good sign.

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

AGGZF' s Operating Margin % Range Over the Past 10 Years
Min: 0.72   Med: 9.74   Max: 13.1
Current: 11.58


AGGZF's Operating Margin % is ranked better than
75.24% of 206 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 7.4 vs AGGZF: 11.58

Ag Growth International's 5-Year Average Operating Margin % Growth Rate was 8.50% per year.

Ag Growth International's Operating Income for the three months ended in Mar. 2024 was $18 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $129 Mil.

Warning Sign:

Ag Growth International Inc has recorded a loss in operating income at least once over the past 3 years.


Ag Growth International Operating Margin % Historical Data

The historical data trend for Ag Growth 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.

Ag Growth International Operating Margin % Chart

Ag Growth International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.41 0.72 5.66 9.00 11.55

Ag Growth International Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 7.99 12.14 15.79 9.60 7.79

Competitive Comparison of Ag Growth International's Operating Margin %

For the Farm & Heavy Construction Machinery subindustry, Ag Growth 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.


Ag Growth International's Operating Margin % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Ag Growth International's Operating Margin % distribution charts can be found below:

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



Ag Growth 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.

Ag Growth International'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 )
=131.383 / 1137.946
=11.55 %

Ag Growth International's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=18.097 / 232.414
=7.79 %

* 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.


Ag Growth International  (OTCPK:AGGZF) 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.


Ag Growth International Operating Margin % Related Terms

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Ag Growth International (Ag Growth International) Business Description

Traded in Other Exchanges
Address
198 Commerce Drive, Winnipeg, MB, CAN, R3P 0Z6
Ag Growth International Inc manufactures portable and stationary grain handling, storage, and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment, and grain drying systems. The company operates mainly in Portable handling, permanent handling, storage and conditioning, livestock, and manufacturing sectors. It has two reportable segment farm and commercial. Some of its brands are batco, wheatheart, westfield, storm, rem, hi roller, union iron, hsi, tramco, ptm, vis, nuvision. It has manufacturing facilities in Canada, the United States, Italy, Brazil, France, United Kingdom, and India. Its geographical segments are Canada, United States, and the International.

Ag Growth International (Ag Growth International) Headlines

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