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Micronics Japan Co (TSE:6871) Operating Margin % : 20.74% (As of Dec. 2023)


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What is Micronics Japan Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Micronics Japan Co's Operating Income for the three months ended in Dec. 2023 was 円2,648 Mil. Micronics Japan Co's Revenue for the three months ended in Dec. 2023 was 円12,770 Mil. Therefore, Micronics Japan Co's Operating Margin % for the quarter that ended in Dec. 2023 was 20.74%.

Good Sign:

Micronics Japan Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

TSE:6871' s Operating Margin % Range Over the Past 10 Years
Min: 5.25   Med: 8.74   Max: 20.82
Current: 13.87


TSE:6871's Operating Margin % is ranked better than
74.49% of 984 companies
in the Semiconductors industry
Industry Median: 4.555 vs TSE:6871: 13.87

Micronics Japan Co's 5-Year Average Operating Margin % Growth Rate was 29.50% per year.

Micronics Japan Co's Operating Income for the three months ended in Dec. 2023 was 円2,648 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was 円5,312 Mil.


Micronics Japan Co Operating Margin % Historical Data

The historical data trend for Micronics Japan 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.

Micronics Japan Co Operating Margin % Chart

Micronics Japan Co Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Dec21 Dec22
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.62 5.25 6.57 20.61 20.82

Micronics Japan Co Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 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 20.60 20.22 -3.10 10.69 20.74

Competitive Comparison of Micronics Japan Co's Operating Margin %

For the Semiconductor Equipment & Materials subindustry, Micronics Japan 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.


Micronics Japan Co's Operating Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Micronics Japan Co's Operating Margin % distribution charts can be found below:

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



Micronics Japan 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.

Micronics Japan Co's Operating Margin % for the fiscal year that ended in Dec. 2022 is calculated as

Operating Margin %=Operating Income (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=9226 / 44321
=20.82 %

Micronics Japan 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 )
=2648 / 12770
=20.74 %

* 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.


Micronics Japan Co  (TSE:6871) 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.


Micronics Japan Co Operating Margin % Related Terms

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Micronics Japan Co (TSE:6871) Business Description

Traded in Other Exchanges
Address
2-6-8 Kichijoji Hon-cho, Musashino-shi, Tokyo, JPN, 180 8508
Micronics Japan Co Ltd is a Japanese company which is engaged in manufacturing of semiconductor and related products. It mainly produces probe cards for testing the electrical properties of wafers, testing equipment and test sockets for property testing after packaging, and a wafer prober, which is used for evaluation and analysis of devices. The company also offers products such as array probers, which are used for testing the electrical properties of flat panel displays (FDP), automated optical inspection equipment used for the display inspection of panels, and probe units that send electrical signals to test panels. Its product portfolio includes probe cards, package probe, semiconductor test equipment, automated optical inspection equipment, probe units, and FDP prober products.

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