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V2X (VVX) Operating Margin % : 3.00% (As of Mar. 2024)


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What is V2X Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. V2X's Operating Income for the three months ended in Mar. 2024 was $30 Mil. V2X's Revenue for the three months ended in Mar. 2024 was $1,011 Mil. Therefore, V2X's Operating Margin % for the quarter that ended in Mar. 2024 was 3.00%.

Warning Sign:

V2X Inc operating margin has been in a 5-year decline. The average rate of decline per year is -7.3%.

The historical rank and industry rank for V2X's Operating Margin % or its related term are showing as below:

VVX' s Operating Margin % Range Over the Past 10 Years
Min: 1.93   Med: 3.43   Max: 3.76
Current: 3.08


VVX's Operating Margin % is ranked worse than
62.83% of 304 companies
in the Aerospace & Defense industry
Industry Median: 6.89 vs VVX: 3.08

V2X's 5-Year Average Operating Margin % Growth Rate was -7.30% per year.

V2X's Operating Income for the three months ended in Mar. 2024 was $30 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $124 Mil.


V2X Operating Margin % Historical Data

The historical data trend for V2X'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.

V2X Operating Margin % Chart

V2X Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.59 3.12 3.48 1.93 3.14

V2X Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 3.24 3.50 2.10 3.70 3.00

Competitive Comparison of V2X's Operating Margin %

For the Aerospace & Defense subindustry, V2X'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.


V2X's Operating Margin % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, V2X's Operating Margin % distribution charts can be found below:

* The bar in red indicates where V2X's Operating Margin % falls into.



V2X 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.

V2X's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=124.416 / 3963.126
=3.14 %

V2X's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=30.331 / 1010.564
=3.00 %

* 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.


V2X  (NYSE:VVX) 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.


V2X Operating Margin % Related Terms

Thank you for viewing the detailed overview of V2X's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


V2X (VVX) Business Description

Traded in Other Exchanges
Address
7901 Jones Branch Drive, Suite 700, McLean, VA, USA, 22102
V2X Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offers facility and logistics services and information technology mission support and engineering and digital integration services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations, and others.
Executives
William Boyd Noon officer: CVP, Chief Accounting Officer 150 FIELD DRIVE, SUITE 250, LAKE FOREST IL 60045
Kevin T Boyle officer: SVP, CLO & General Counsel 2424 GARDEN OF THE GODS ROAD, COLORADO SPRINGS CO 80919
Michael James Smith officer: See Remarks C/O VECTRUS, INC., 2424 GARDEN OF THE GODS ROAD, SUITE 300, COLORADO SPRINGS CO 80919
Shawn Mural officer: Senior Vice President and CFO 15197 CARVER COURT, WATERFORD VA 20197
Josephine F. Bjornson officer: Chief Human Resources Officer 7901 JONES BRANCH DRIVE, SUITE 700, MCLEAN VA 22102
Abbas Elegba director 7901 JONES BRANCH DRIVE, SUITE 700, MCLEAN VA 22102
Dino M Cusumano director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Aipcf Vi Vertex Aerospace Funding Lp 10 percent owner C/O AIP 450 LEXINGTON AVENUE, 40TH FLOOR, NEW YORK NY 10017
Aipcf Vi, Llc 10 percent owner 450 LEXINGTON AVENUE, 40TH FLOOR, NEW YORK NY 10017
Lightship Capital Llc 10 percent owner 330 MADISON AVENUE, 28TH FLOOR, NEW YORK NY 10017
Stephen L Waechter director 1100 N GLEBE ROAD, ARLINGTON VA 22201
Eric M Pillmore director C/O TYCO INTERNATIONAL (US) INC, 9 WEST 57TH ST 43RD FL., NEW YORK NY 10019
Joel M. Rotroff director C/O REV GROUP, INC., 111 EAST KILBOURN AVENUE, SUITE 2600, MILWAUKEE WI 53202
Neil Snyder director C/O GARDNER DENVER HOLDINGS, INC., 222 EAST ERIE STREET, SUITE 500, MILWAUKEE WI 53202
American Industrial Partners Capital Fund Vi, L.p. 10 percent owner 330 MADISON AVENUE, 28TH FLOOR, NEW YORK NY 10017

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