REDtone Digital Bhd (XKLS:0032) Operating Margin % : 16.76% (As of Dec. 2023)

REDtone Digital Bhd Operating Margin % Chart

REDtone Digital Bhd Annual Data
	Trend	May12	May13	May14	May15	Apr17	Apr18	Jun20	Jun21	Jun22	Jun23
Operating Margin %		Get a 7-Day Free Trial					5.86	25.60	23.69	32.52	23.90

REDtone Digital Bhd Quarterly Data
	Oct18	Jan19	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															25.89	100.00	-141.31	20.68	16.76

Competitive Comparison of REDtone Digital Bhd's Operating Margin %

For the Telecom Services subindustry, REDtone Digital Bhd'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.

REDtone Digital Bhd's Operating Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, REDtone Digital Bhd's Operating Margin % distribution charts can be found below:

* The bar in red indicates where REDtone Digital Bhd's Operating Margin % falls into.

REDtone Digital Bhd 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.

REDtone Digital Bhd's Operating Margin % for the fiscal year that ended in Jun. 2023 is calculated as

REDtone Digital Bhd's Operating Margin % for the quarter that ended in Dec. 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.

REDtone Digital Bhd  (XKLS:0032) 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.

REDtone Digital Bhd Operating Margin % Related Terms

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REDtone Digital Bhd (XKLS:0032) Business Description