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Inspiration Healthcare Group (LSE:IHC) Operating Margin % : 2.73% (As of Jul. 2023)


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What is Inspiration Healthcare Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Inspiration Healthcare Group's Operating Income for the six months ended in Jul. 2023 was £0.56 Mil. Inspiration Healthcare Group's Revenue for the six months ended in Jul. 2023 was £20.37 Mil. Therefore, Inspiration Healthcare Group's Operating Margin % for the quarter that ended in Jul. 2023 was 2.73%.

Warning Sign:

Inspiration Healthcare Group PLC operating margin has been in a 5-year decline. The average rate of decline per year is -6.7%.

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

LSE:IHC' s Operating Margin % Range Over the Past 10 Years
Min: -21.6   Med: 7.93   Max: 10.65
Current: 2.67


LSE:IHC's Operating Margin % is ranked better than
52.68% of 820 companies
in the Medical Devices & Instruments industry
Industry Median: 0.94 vs LSE:IHC: 2.67

Inspiration Healthcare Group's 5-Year Average Operating Margin % Growth Rate was -6.70% per year.

Inspiration Healthcare Group's Operating Income for the six months ended in Jul. 2023 was £0.56 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2023 was £1.10 Mil.


Inspiration Healthcare Group Operating Margin % Historical Data

The historical data trend for Inspiration Healthcare Group'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.

Inspiration Healthcare Group Operating Margin % Chart

Inspiration Healthcare Group Annual Data
Trend Dec14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.90 6.67 9.63 10.37 3.85

Inspiration Healthcare Group Semi-Annual Data
Dec13 Jun14 Dec14 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23
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 12.43 8.22 5.11 2.61 2.73

Competitive Comparison of Inspiration Healthcare Group's Operating Margin %

For the Medical Devices subindustry, Inspiration Healthcare Group'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.


Inspiration Healthcare Group's Operating Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Inspiration Healthcare Group's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Inspiration Healthcare Group's Operating Margin % falls into.



Inspiration Healthcare Group 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.

Inspiration Healthcare Group's Operating Margin % for the fiscal year that ended in Jan. 2023 is calculated as

Operating Margin %=Operating Income (A: Jan. 2023 ) / Revenue (A: Jan. 2023 )
=1.589 / 41.233
=3.85 %

Inspiration Healthcare Group's Operating Margin % for the quarter that ended in Jul. 2023 is calculated as

Operating Margin %=Operating Income (Q: Jul. 2023 ) / Revenue (Q: Jul. 2023 )
=0.556 / 20.37
=2.73 %

* 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.


Inspiration Healthcare Group  (LSE:IHC) 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.


Inspiration Healthcare Group Operating Margin % Related Terms

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Inspiration Healthcare Group (LSE:IHC) Business Description

Traded in Other Exchanges
N/A
Address
Unit 7/8 Commerce Park, Commerce Way, Croydon, GBR, CR0 4YL
Inspiration Healthcare Group PLC supplies outcome-improving medical devices in the areas of neonatal intensive care and patient warming. It operates in the Critical Care Medical Devices segment which includes Critical Care, Operating Theatre, and Home Healthcare. The company derives the maximum of its revenue from the United Kingdom through the Critical Care market division.

Inspiration Healthcare Group (LSE:IHC) Headlines

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