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Ebos Group (NZSE:EBO) Operating Margin % : 3.70% (As of Dec. 2023)


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What is Ebos Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Ebos Group's Operating Income for the six months ended in Dec. 2023 was NZ$262 Mil. Ebos Group's Revenue for the six months ended in Dec. 2023 was NZ$7,088 Mil. Therefore, Ebos Group's Operating Margin % for the quarter that ended in Dec. 2023 was 3.70%.

Good Sign:

Ebos Group Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

NZSE:EBO' s Operating Margin % Range Over the Past 10 Years
Min: 2.73   Med: 3.07   Max: 3.78
Current: 3.78


NZSE:EBO's Operating Margin % is ranked better than
61.22% of 98 companies
in the Medical Distribution industry
Industry Median: 3 vs NZSE:EBO: 3.78

Ebos Group's 5-Year Average Operating Margin % Growth Rate was 2.90% per year.

Ebos Group's Operating Income for the six months ended in Dec. 2023 was NZ$262 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was NZ$523 Mil.


Ebos Group Operating Margin % Historical Data

The historical data trend for Ebos 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.

Ebos Group Operating Margin % Chart

Ebos Group Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.29 3.01 3.21 3.32 3.75

Ebos Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 2.26 4.26 3.62 3.87 3.70

Competitive Comparison of Ebos Group's Operating Margin %

For the Medical Distribution subindustry, Ebos 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.


Ebos Group's Operating Margin % Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, Ebos Group's Operating Margin % distribution charts can be found below:

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



Ebos 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.

Ebos Group's Operating Margin % for the fiscal year that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=498.997 / 13317.446
=3.75 %

Ebos Group'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 )
=262.011 / 7087.852
=3.70 %

* 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.


Ebos Group  (NZSE:EBO) 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.


Ebos Group Operating Margin % Related Terms

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Ebos Group (NZSE:EBO) Business Description

Traded in Other Exchanges
Address
108 Wrights Road, P.O. Box 411, Christchurch, STL, NZL, 8024
Ebos is the largest pharmaceutical wholesaler and distributor across Australia and New Zealand. It services community pharmacies and hospitals, which contribute around 60% and 30% of revenue respectively. Drug pricing and wholesale margins for PBS medicine are governed by the Australian government's Pharmaceutical Benefits Scheme, or PBS. Wholesale gross margins are capped at 7% for community pharmacy and 10% for hospitals, and ongoing price reform typically results in low single digit revenue growth. Aside from pharma distribution, Ebos operates an animal health product wholesale, manufacturing and retail business, as well as undertaking third party logistics services. These segments are smaller contributors to group revenue but due to the unregulated nature are higher-margin operations.

Ebos Group (NZSE:EBO) Headlines

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