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Lyft (LYFT) Operating Margin % : -4.91% (As of Dec. 2023)


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What is Lyft Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Lyft's Operating Income for the three months ended in Dec. 2023 was $-60 Mil. Lyft's Revenue for the three months ended in Dec. 2023 was $1,225 Mil. Therefore, Lyft's Operating Margin % for the quarter that ended in Dec. 2023 was -4.91%.

Good Sign:

Lyft Inc operating margin is expanding. Margin expansion is usually a good sign.

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

LYFT' s Operating Margin % Range Over the Past 10 Years
Min: -201.75   Med: -56.09   Max: -10.8
Current: -10.8


LYFT's Operating Margin % is ranked worse than
70.32% of 2756 companies
in the Software industry
Industry Median: 3.135 vs LYFT: -10.80

Lyft's 5-Year Average Operating Margin % Growth Rate was 25.20% per year.

Lyft's Operating Income for the three months ended in Dec. 2023 was $-60 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-476 Mil.


Lyft Operating Margin % Historical Data

The historical data trend for Lyft'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.

Lyft Operating Margin % Chart

Lyft Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial -74.74 -76.47 -35.38 -35.63 -10.80

Lyft 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 -50.73 -21.66 -15.53 -3.47 -4.91

Competitive Comparison of Lyft's Operating Margin %

For the Software - Application subindustry, Lyft'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.


Lyft's Operating Margin % Distribution in the Software Industry

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

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



Lyft 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.

Lyft'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 )
=-475.604 / 4403.589
=-10.80 %

Lyft'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 )
=-60.151 / 1224.585
=-4.91 %

* 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.


Lyft  (NAS:LYFT) 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.


Lyft Operating Margin % Related Terms

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


Lyft (LYFT) Business Description

Traded in Other Exchanges
Address
185 Berry Street, Suite 400, San Francisco, CA, USA, 94107
Lyft is the second-largest ride-sharing service provider in the U.S. and Canada, connecting riders and drivers over the Lyft app. Incorporated in 2013, Lyft offers a variety of rides via private vehicles, including traditional private rides, shared rides, and luxury ones. Besides ride-share, Lyft also has entered the bike- and scooter-share market to bring multimodal transportation options to users.
Executives
Kristin Sverchek officer: General Counsel and Secretary C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107
Lisa Blackwood-kapral officer: Chief Accounting Officer C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107
John Patrick Zimmer director, officer: President C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107
Erin Brewer officer: Chief Financial Officer MCKESSON CORPORATION, ONE POST STREET, SAN FRANCISCO CA 94104
Logan Green director, officer: Chief Executive Officer C/O EBAY INC., 2025 HAMILTON AVE., SAN JOSE CA 95125
Prashant Aggarwal director C/O ARLO TECHNOLOGIES, INC., 350 EAST PLUMERIA DR, SAN JOSE CA 95134
Mary Agnes Wilderotter director 115 ALPINE TERRACE, OAKLAND CA 94618
John David Risher director C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107
Dave Stephenson director C/O AIRBNB, INC., 888 BRANNAN STREET, SAN FRANCISCO CA 94103
Janey Whiteside director C/O LENDINGCLUB CORPORATION, 595 MARKET ST., #200, SAN FRANCISCO CA 94105
Elaine Paul officer: Chief Financial Officer C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107
Ashwin Raj officer: Head of Rideshare C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107
David Lawee director C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107
Brian Keith Roberts officer: Chief Financial Officer C/O LYFT, INC., 185 BERRY STREET, SUITE 5000, SAN FRANCISCO CA 94107
Ariel M. Cohen director C/O LYFT, INC., 185 BERRY STREET, SUITE 400, SAN FRANCISCO CA 94107