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Kingsoft Cloud Holdings (Kingsoft Cloud Holdings) Operating Margin % : -14.04% (As of Dec. 2023)


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What is Kingsoft Cloud Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Kingsoft Cloud Holdings's Operating Income for the three months ended in Dec. 2023 was $-33.9 Mil. Kingsoft Cloud Holdings's Revenue for the three months ended in Dec. 2023 was $241.2 Mil. Therefore, Kingsoft Cloud Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was -14.04%.

Good Sign:

Kingsoft Cloud Holdings Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

KC' s Operating Margin % Range Over the Past 10 Years
Min: -58.81   Med: -27.24   Max: -18.55
Current: -21.24


KC's Operating Margin % is ranked worse than
77.09% of 2759 companies
in the Software industry
Industry Median: 3.28 vs KC: -21.24

Kingsoft Cloud Holdings's 5-Year Average Operating Margin % Growth Rate was 11.60% per year.

Kingsoft Cloud Holdings's Operating Income for the three months ended in Dec. 2023 was $-33.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-210.4 Mil.


Kingsoft Cloud Holdings Operating Margin % Historical Data

The historical data trend for Kingsoft Cloud Holdings'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.

Kingsoft Cloud Holdings Operating Margin % Chart

Kingsoft Cloud Holdings Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial -28.90 -18.55 -19.03 -27.24 -19.21

Kingsoft Cloud Holdings 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 -30.01 -32.07 -17.06 -20.69 -14.04

Competitive Comparison of Kingsoft Cloud Holdings's Operating Margin %

For the Software - Application subindustry, Kingsoft Cloud Holdings'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.


Kingsoft Cloud Holdings's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Kingsoft Cloud Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Kingsoft Cloud Holdings's Operating Margin % falls into.



Kingsoft Cloud Holdings 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.

Kingsoft Cloud Holdings'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 )
=-189.64 / 987.012
=-19.21 %

Kingsoft Cloud Holdings'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 )
=-33.881 / 241.233
=-14.04 %

* 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.


Kingsoft Cloud Holdings  (NAS:KC) 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.


Kingsoft Cloud Holdings Operating Margin % Related Terms

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Kingsoft Cloud Holdings (Kingsoft Cloud Holdings) Business Description

Traded in Other Exchanges
Address
No. 33 Xierqi Middle Road, Building D, Xiaomi Science and Technology Park, Haidian District, Beijing, CHN, 100085
Kingsoft Cloud Holdings Ltd is an independent cloud service provider in China. The company has built a cloud platform consisting of cloud infrastructure, cloud products and industry-specific solutions across public cloud, enterprise cloud, and IoT cloud services. Its products and services are categorized in compute, networking, storage and delivery, database, data analysis, security, video services, and developer services. Geographically, the firm operates in China.