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Sociedad Minera Cerro VerdeA (LIM:CVERDEC1) Operating Margin % : 32.37% (As of Dec. 2023)


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What is Sociedad Minera Cerro VerdeA Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Sociedad Minera Cerro VerdeA's Operating Income for the six months ended in Dec. 2023 was $1,341 Mil. Sociedad Minera Cerro VerdeA's Revenue for the six months ended in Dec. 2023 was $4,143 Mil. Therefore, Sociedad Minera Cerro VerdeA's Operating Margin % for the quarter that ended in Dec. 2023 was 32.37%.

Warning Sign:

Sociedad Minera Cerro Verde SAA operating margin has been in a 5-year decline. The average rate of decline per year is -5%.

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

LIM:CVERDEC1' s Operating Margin % Range Over the Past 10 Years
Min: 21.48   Med: 52.94   Max: 71.23
Current: 32.37


LIM:CVERDEC1's Operating Margin % is ranked better than
91.13% of 857 companies
in the Metals & Mining industry
Industry Median: 1.88 vs LIM:CVERDEC1: 32.37

Sociedad Minera Cerro VerdeA's 5-Year Average Operating Margin % Growth Rate was -5.00% per year.

Sociedad Minera Cerro VerdeA's Operating Income for the six months ended in Dec. 2023 was $1,341 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $1,341 Mil.


Sociedad Minera Cerro VerdeA Operating Margin % Historical Data

The historical data trend for Sociedad Minera Cerro VerdeA'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.

Sociedad Minera Cerro VerdeA Operating Margin % Chart

Sociedad Minera Cerro VerdeA Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 27.13 21.48 45.87 35.88 32.37

Sociedad Minera Cerro VerdeA Semi-Annual Data
Dec05 Dec06 Dec07 Dec08 Dec09 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only 27.13 21.48 45.87 35.88 32.37

Competitive Comparison of Sociedad Minera Cerro VerdeA's Operating Margin %

For the Copper subindustry, Sociedad Minera Cerro VerdeA'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.


Sociedad Minera Cerro VerdeA's Operating Margin % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Sociedad Minera Cerro VerdeA's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Sociedad Minera Cerro VerdeA's Operating Margin % falls into.



Sociedad Minera Cerro VerdeA 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.

Sociedad Minera Cerro VerdeA'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 )
=1341.119 / 4143.228
=32.37 %

Sociedad Minera Cerro VerdeA'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 )
=1341.119 / 4143.228
=32.37 %

* 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.


Sociedad Minera Cerro VerdeA  (LIM:CVERDEC1) 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.


Sociedad Minera Cerro VerdeA Operating Margin % Related Terms

Thank you for viewing the detailed overview of Sociedad Minera Cerro VerdeA's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Sociedad Minera Cerro VerdeA (LIM:CVERDEC1) Business Description

Traded in Other Exchanges
N/A
Address
Avenue Alfonso Ugarte 304, Arequipa, PER
Sociedad Minera Cerro Verde SAA is involved in the exploration, extraction, production and sale of copper from deposits located in the southwest of the Arequipa city.

Sociedad Minera Cerro VerdeA (LIM:CVERDEC1) Headlines

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