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Kanamic Network Co (TSE:3939) Operating Margin % : 25.81% (As of Dec. 2023)


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What is Kanamic Network Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Kanamic Network Co's Operating Income for the three months ended in Dec. 2023 was 円308 Mil. Kanamic Network Co's Revenue for the three months ended in Dec. 2023 was 円1,193 Mil. Therefore, Kanamic Network Co's Operating Margin % for the quarter that ended in Dec. 2023 was 25.81%.

Good Sign:

Kanamic Network Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

TSE:3939' s Operating Margin % Range Over the Past 10 Years
Min: 23.39   Med: 29.26   Max: 40.46
Current: 28.24


TSE:3939's Operating Margin % is ranked better than
96.47% of 652 companies
in the Healthcare Providers & Services industry
Industry Median: 3.805 vs TSE:3939: 28.24

Kanamic Network Co's 5-Year Average Operating Margin % Growth Rate was 3.40% per year.

Kanamic Network Co's Operating Income for the three months ended in Dec. 2023 was 円308 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was 円1,169 Mil.


Kanamic Network Co Operating Margin % Historical Data

The historical data trend for Kanamic Network Co'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.

Kanamic Network Co Operating Margin % Chart

Kanamic Network Co Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only 32.30 34.79 40.46 38.47 29.26

Kanamic Network Co 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 29.38 34.59 26.70 26.73 25.81

Competitive Comparison of Kanamic Network Co's Operating Margin %

For the Health Information Services subindustry, Kanamic Network Co'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.


Kanamic Network Co's Operating Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Kanamic Network Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Kanamic Network Co's Operating Margin % falls into.



Kanamic Network Co 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.

Kanamic Network Co's Operating Margin % for the fiscal year that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=1096.08 / 3746.46
=29.26 %

Kanamic Network Co'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 )
=307.774 / 1192.515
=25.81 %

* 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.


Kanamic Network Co  (TSE:3939) 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.


Kanamic Network Co Operating Margin % Related Terms

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Kanamic Network Co (TSE:3939) Business Description

Traded in Other Exchanges
Address
4-20-3 Ebisu, 31st floor, Ebisu Garden Place Tower, Shibuya-ku, Tokyo, JPN, 150-6031
Kanamic Network Co Ltd provides platforms and management systems for the health care industry. The firm develops software to support medical care and nursing care business management. It offers cloud services for construction of information sharing platform in the medical and nursing care field to local government staff, doctors, nurses, care managers; system integration and system solution business; Website production/management work; and planning, production, and sale of Web content and video, and various sales promotion tools. In addition, it offers management and system consulting services, and education and training services; and engages in planning and holding lectures, seminars, academic conferences.

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