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Raia Drogasil (BSP:RADL3) Operating Margin % : 4.63% (As of Dec. 2023)


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What is Raia Drogasil Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Raia Drogasil's Operating Income for the three months ended in Dec. 2023 was R$413 Mil. Raia Drogasil's Revenue for the three months ended in Dec. 2023 was R$8,924 Mil. Therefore, Raia Drogasil's Operating Margin % for the quarter that ended in Dec. 2023 was 4.63%.

Good Sign:

Raia Drogasil SA operating margin is expanding. Margin expansion is usually a good sign.

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

BSP:RADL3' s Operating Margin % Range Over the Past 10 Years
Min: 4.66   Med: 5.67   Max: 6.31
Current: 5.73


BSP:RADL3's Operating Margin % is ranked better than
57.67% of 652 companies
in the Healthcare Providers & Services industry
Industry Median: 3.805 vs BSP:RADL3: 5.73

Raia Drogasil's 5-Year Average Operating Margin % Growth Rate was 3.90% per year.

Raia Drogasil's Operating Income for the three months ended in Dec. 2023 was R$413 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was R$1,947 Mil.


Raia Drogasil Operating Margin % Historical Data

The historical data trend for Raia Drogasil'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.

Raia Drogasil Operating Margin % Chart

Raia Drogasil 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 5.10 4.68 5.70 6.31 5.72

Raia Drogasil 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 6.03 5.44 7.34 5.57 4.63

Competitive Comparison of Raia Drogasil's Operating Margin %

For the Pharmaceutical Retailers subindustry, Raia Drogasil'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.


Raia Drogasil's Operating Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Raia Drogasil's Operating Margin % distribution charts can be found below:

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



Raia Drogasil 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.

Raia Drogasil'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 )
=1944.069 / 33973.79
=5.72 %

Raia Drogasil'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 )
=413.035 / 8924.32
=4.63 %

* 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.


Raia Drogasil  (BSP:RADL3) 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.


Raia Drogasil Operating Margin % Related Terms

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Raia Drogasil (BSP:RADL3) Business Description

Traded in Other Exchanges
Address
Avenue Corifeu de Azevedo Marques, 3097 Butanta, Sao Paulo, SP, BRA, 05339-9000
Raia Drogasil SA is a large retail drug store operator in Brazil. The company's stores sell branded and generic medication, over-the-counter medicine, health and beauty aids, perfumery, cosmetics, household items, and personal care products. The company also acts as a pharmacy benefit manager, performing medical purchases with prenegotiated discounts. The majority of Raia Drogasil's revenue is generated through branded drug sales, while the bulk of the remaining revenue stems from perfumery, over-the-counter drugs, and generic drugs. The company owns a variety of stakes in operational subsidiaries.

Raia Drogasil (BSP:RADL3) Headlines

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