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Vanachai Group PCL (BKK:VNG) Operating Margin % : 6.27% (As of Dec. 2023)


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What is Vanachai Group PCL Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Vanachai Group PCL's Operating Income for the three months ended in Dec. 2023 was ฿244 Mil. Vanachai Group PCL's Revenue for the three months ended in Dec. 2023 was ฿3,898 Mil. Therefore, Vanachai Group PCL's Operating Margin % for the quarter that ended in Dec. 2023 was 6.27%.

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

BKK:VNG' s Operating Margin % Range Over the Past 10 Years
Min: -11.24   Med: 8.42   Max: 15.92
Current: 3.38


BKK:VNG's Operating Margin % is ranked worse than
52.43% of 288 companies
in the Forest Products industry
Industry Median: 3.825 vs BKK:VNG: 3.38

Vanachai Group PCL's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Vanachai Group PCL's Operating Income for the three months ended in Dec. 2023 was ฿244 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was ฿479 Mil.


Vanachai Group PCL Operating Margin % Historical Data

The historical data trend for Vanachai Group PCL'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.

Vanachai Group PCL Operating Margin % Chart

Vanachai Group PCL 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 -11.24 -4.38 12.53 8.27 3.38

Vanachai Group PCL Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -2.66 -4.10 4.78 7.37 6.27

Competitive Comparison of Vanachai Group PCL's Operating Margin %

For the Lumber & Wood Production subindustry, Vanachai Group PCL'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.


Vanachai Group PCL's Operating Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Vanachai Group PCL's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Vanachai Group PCL's Operating Margin % falls into.



Vanachai Group PCL 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.

Vanachai Group PCL'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 )
=478.719 / 14148.185
=3.38 %

Vanachai Group PCL'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 )
=244.405 / 3898.176
=6.27 %

* 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.


Vanachai Group PCL  (BKK:VNG) 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.


Vanachai Group PCL Operating Margin % Related Terms

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Vanachai Group PCL (BKK:VNG) Business Description

Traded in Other Exchanges
N/A
Address
2/1 Wongsawang Road, Wongsawang, Bangsue, Bangkok, THA, 10800
Vanachai Group PCL is a building materials company that manufactures and distributes wood-based products. The company's primary products include board panels, particle boards, and wood substitutes. The company creates wood-based goods such as particleboards, medium density fiberboards (MDF boards), Doorskin and melamine laminated particleboards, which are distributed to both domestic and international markets. Vanachai also sells finished products that include melamine doors, door frames, resins, formaldehyde adhesives, and finished flooring. The company generates the vast majority of its revenue in Thailand.

Vanachai Group PCL (BKK:VNG) Headlines