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Haleon (Haleon) Operating Margin % : 22.44% (As of Mar. 2024)


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What is Haleon Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Haleon's Operating Income for the three months ended in Mar. 2024 was $832 Mil. Haleon's Revenue for the three months ended in Mar. 2024 was $3,709 Mil. Therefore, Haleon's Operating Margin % for the quarter that ended in Mar. 2024 was 22.44%.

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

HLN' s Operating Margin % Range Over the Past 10 Years
Min: 10.58   Med: 16.81   Max: 18.02
Current: 18.02


HLN's Operating Margin % is ranked better than
80.65% of 1018 companies
in the Drug Manufacturers industry
Industry Median: 6.075 vs HLN: 18.02

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

Haleon's Operating Income for the three months ended in Mar. 2024 was $832 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $2,547 Mil.


Haleon Operating Margin % Historical Data

The historical data trend for Haleon'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.

Haleon Operating Margin % Chart

Haleon Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
10.58 16.15 17.16 16.81 17.66

Haleon Quarterly Data
Dec19 Dec20 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 21.00 18.68 20.87 9.80 22.44

Competitive Comparison of Haleon's Operating Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Haleon'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.


Haleon's Operating Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Haleon's Operating Margin % distribution charts can be found below:

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



Haleon 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.

Haleon'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 )
=2526.582 / 14306.329
=17.66 %

Haleon'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 )
=832.274 / 3709.022
=22.44 %

* 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.


Haleon  (NYSE:HLN) 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.


Haleon Operating Margin % Related Terms

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Haleon (Haleon) Business Description

Traded in Other Exchanges
Address
The Heights, Building 5, First Floor, Surrey, Weybridge, GBR, KT13 0NY
Haleon is one of the largest consumer health companies in the world. Formed by a combination of consumer health divisions of GSK, Pfizer, and Novartis, Haleon separated from GSK and went public in July 2022. The firm generates 60% of sales from global power brands including Sensodyne, Advil, Centrum, and Poligrip, that play in many geographies and are often leaders in their respective categories. It also has a number of local brands, including Emergen-C, Eno, Tums, and Caltrate, that are more tailored to regional needs and have strong local brand equity. Overall, Haleon's brands tackle a variety of silos within consumer health including oral care, digestive health, pain relief, and nutrition.