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Dexus Convenience Retail REIT (ASX:DXC) Operating Margin % : 73.88% (As of Dec. 2023)


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What is Dexus Convenience Retail REIT Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Dexus Convenience Retail REIT's Operating Income for the six months ended in Dec. 2023 was A$21.39 Mil. Dexus Convenience Retail REIT's Revenue for the six months ended in Dec. 2023 was A$28.95 Mil. Therefore, Dexus Convenience Retail REIT's Operating Margin % for the quarter that ended in Dec. 2023 was 73.88%.

Warning Sign:

Dexus Convenience Retail REIT operating margin has been in a 5-year decline. The average rate of decline per year is -3%.

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

ASX:DXC' s Operating Margin % Range Over the Past 10 Years
Min: 74.76   Med: 81.81   Max: 89.04
Current: 74.76


ASX:DXC's Operating Margin % is ranked better than
81.13% of 689 companies
in the REITs industry
Industry Median: 52.23 vs ASX:DXC: 74.76

Dexus Convenience Retail REIT's 5-Year Average Operating Margin % Growth Rate was -3.00% per year.

Dexus Convenience Retail REIT's Operating Income for the six months ended in Dec. 2023 was A$21.39 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was A$43.09 Mil.


Dexus Convenience Retail REIT Operating Margin % Historical Data

The historical data trend for Dexus Convenience Retail REIT'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.

Dexus Convenience Retail REIT Operating Margin % Chart

Dexus Convenience Retail REIT Annual Data
Trend Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Operating Margin %
Get a 7-Day Free Trial 82.81 81.88 81.73 75.63 76.19

Dexus Convenience Retail REIT Semi-Annual Data
Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 73.86 77.03 76.71 75.64 73.88

Competitive Comparison of Dexus Convenience Retail REIT's Operating Margin %

For the REIT - Retail subindustry, Dexus Convenience Retail REIT'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.


Dexus Convenience Retail REIT's Operating Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Dexus Convenience Retail REIT's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Dexus Convenience Retail REIT's Operating Margin % falls into.



Dexus Convenience Retail REIT 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.

Dexus Convenience Retail REIT's Operating Margin % for the fiscal year that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=45.24 / 59.376
=76.19 %

Dexus Convenience Retail REIT's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=21.389 / 28.952
=73.88 %

* 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.


Dexus Convenience Retail REIT  (ASX:DXC) 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.


Dexus Convenience Retail REIT Operating Margin % Related Terms

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Dexus Convenience Retail REIT (ASX:DXC) Business Description

Traded in Other Exchanges
N/A
Address
50 Bridge Street, Level 30, Sydney, NSW, AUS, 2000
Dexus Convenience Retail REIT is an Australian real estate investment trust. The company owns a portfolio of service stations and convenience retail assets located across Australia. The company derives all income from investments in properties located in Australia. The principal investment objective of the group is to invest in convenience retail properties that provide investors with a high and consistent income distribution that maintains its real value for the life of the group.