Orix Jreit (TSE:8954) Operating Margin % : 35.03% (As of Aug. 2023)

Orix Jreit Operating Margin % Chart

Orix Jreit Annual Data
	Trend	Aug14	Aug15	Aug16	Aug17	Aug18	Aug19	Aug20	Aug21	Aug22	Aug23
Operating Margin %		Get a 7-Day Free Trial					46.10	49.99	46.54	46.91	41.31

Orix Jreit Semi-Annual Data
	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
Operating Margin %	Get a 7-Day Free Trial															44.14	49.44	47.60	35.03	43.84

Competitive Comparison of Orix Jreit's Operating Margin %

For the REIT - Office subindustry, Orix Jreit'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.

Orix Jreit's Operating Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Orix Jreit's Operating Margin % distribution charts can be found below:

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

Orix Jreit 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.

Orix Jreit's Operating Margin % for the fiscal year that ended in Aug. 2023 is calculated as

Orix Jreit's Operating Margin % for the quarter that ended in Aug. 2023 is calculated as

* 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.

Orix Jreit  (TSE:8954) 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.

Orix Jreit Operating Margin % Related Terms

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Orix Jreit (TSE:8954) Business Description