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Daiwa Office Investment (TSE:8976) Operating Margin % : 49.45% (As of Nov. 2023)


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What is Daiwa Office Investment Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Daiwa Office Investment's Operating Income for the six months ended in Nov. 2023 was 円6,748 Mil. Daiwa Office Investment's Revenue for the six months ended in Nov. 2023 was 円13,646 Mil. Therefore, Daiwa Office Investment's Operating Margin % for the quarter that ended in Nov. 2023 was 49.45%.

Good Sign:

Daiwa Office Investment Corp operating margin is expanding. Margin expansion is usually a good sign.

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

TSE:8976' s Operating Margin % Range Over the Past 10 Years
Min: 43.53   Med: 49.15   Max: 53.53
Current: 50.23


TSE:8976's Operating Margin % is ranked worse than
53.99% of 689 companies
in the REITs industry
Industry Median: 52.06 vs TSE:8976: 50.23

Daiwa Office Investment's 5-Year Average Operating Margin % Growth Rate was 1.90% per year.

Daiwa Office Investment's Operating Income for the six months ended in Nov. 2023 was 円6,748 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Nov. 2023 was 円14,414 Mil.


Daiwa Office Investment Operating Margin % Historical Data

The historical data trend for Daiwa Office Investment'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.

Daiwa Office Investment Operating Margin % Chart

Daiwa Office Investment Annual Data
Trend Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49.61 50.46 51.60 53.53 52.83

Daiwa Office Investment Semi-Annual Data
May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23
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 52.95 54.74 50.84 50.93 49.45

Competitive Comparison of Daiwa Office Investment's Operating Margin %

For the REIT - Office subindustry, Daiwa Office Investment'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.


Daiwa Office Investment's Operating Margin % Distribution in the REITs Industry

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

* The bar in red indicates where Daiwa Office Investment's Operating Margin % falls into.



Daiwa Office Investment 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.

Daiwa Office Investment's Operating Margin % for the fiscal year that ended in Nov. 2022 is calculated as

Operating Margin %=Operating Income (A: Nov. 2022 ) / Revenue (A: Nov. 2022 )
=14986.188 / 28366.205
=52.83 %

Daiwa Office Investment's Operating Margin % for the quarter that ended in Nov. 2023 is calculated as

Operating Margin %=Operating Income (Q: Nov. 2023 ) / Revenue (Q: Nov. 2023 )
=6747.977 / 13646.228
=49.45 %

* 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.


Daiwa Office Investment  (TSE:8976) 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.


Daiwa Office Investment Operating Margin % Related Terms

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Daiwa Office Investment (TSE:8976) Business Description

Traded in Other Exchanges
N/A
Address
6-2-1 Ginza, Chuo-ku, Tokyo, JPN
Daiwa Office Investment Corp is a real estate investment trust focused on acquiring, managing, and leasing office properties located in the Five Central Wards of Tokyo. The vast majority of the company's real estate portfolio is composed of office buildings fairly evenly distributed between Tokyo's Five Central Wards in terms of total value. Daiwa derives nearly all of its income in the form of rental revenue from leasing its properties. The firm has a varied tenant base from a number of industries, including the entertainment, retail, insurance, and food and beverage companies.

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