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Aftab Automobiles (DHA:AFTABAUTO) Operating Margin % : -16.94% (As of Mar. 2024)


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What is Aftab Automobiles Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Aftab Automobiles's Operating Income for the three months ended in Mar. 2024 was BDT-15.1 Mil. Aftab Automobiles's Revenue for the three months ended in Mar. 2024 was BDT88.9 Mil. Therefore, Aftab Automobiles's Operating Margin % for the quarter that ended in Mar. 2024 was -16.94%.

Warning Sign:

Aftab Automobiles Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -5.3%.

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

DHA:AFTABAUTO' s Operating Margin % Range Over the Past 10 Years
Min: 7   Med: 16.74   Max: 21.32
Current: 7


DHA:AFTABAUTO's Operating Margin % is ranked better than
61.95% of 1280 companies
in the Vehicles & Parts industry
Industry Median: 5.15 vs DHA:AFTABAUTO: 7.00

Aftab Automobiles's 5-Year Average Operating Margin % Growth Rate was -5.30% per year.

Aftab Automobiles's Operating Income for the three months ended in Mar. 2024 was BDT-15.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was BDT39.4 Mil.

Warning Sign:

Aftab Automobiles Ltd has recorded a loss in operating income at least once over the past 3 years.


Aftab Automobiles Operating Margin % Historical Data

The historical data trend for Aftab Automobiles'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.

Aftab Automobiles Operating Margin % Chart

Aftab Automobiles Annual Data
Trend Aug13 Aug14 Aug15 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.69 21.32 15.71 15.78 11.36

Aftab Automobiles 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 11.61 12.36 2.68 16.99 -16.94

Competitive Comparison of Aftab Automobiles's Operating Margin %

For the Auto Manufacturers subindustry, Aftab Automobiles'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.


Aftab Automobiles's Operating Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Aftab Automobiles's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Aftab Automobiles's Operating Margin % falls into.



Aftab Automobiles 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.

Aftab Automobiles'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 )
=134.632 / 1184.911
=11.36 %

Aftab Automobiles'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 )
=-15.065 / 88.919
=-16.94 %

* 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.


Aftab Automobiles  (DHA:AFTABAUTO) 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.


Aftab Automobiles Operating Margin % Related Terms

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Aftab Automobiles (DHA:AFTABAUTO) Business Description

Traded in Other Exchanges
N/A
Address
205-207, Tejgaon I/A, Dhaka, BGD
Aftab Automobiles Ltd is an assembler-cum-manufacturer of Toyota and Hino vehicles. The company is mainly a vehicle assembler and bus-body fabricator. The principal activities of the company were assembling Toyota Land Cruiser soft top/pick up, Land Cruiser Prado, Hino Bus, and Hino Mini Bus/Truck with a yearly production capacity of two thousand four hundred units of vehicles in three shifts. The company produces and markets batteries through its subsidiary. The company operates in three reportable segments assembling unit, motorcycle unit, and body unit. the company operates its's business in Bangladesh.

Aftab Automobiles (DHA:AFTABAUTO) Headlines

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