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Edgars Stores (XZIM:EDGR.ZW) Operating Margin % : -25.35% (As of Jun. 2023)


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What is Edgars Stores Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Edgars Stores's Operating Income for the six months ended in Jun. 2023 was $-25.26 Mil. Edgars Stores's Revenue for the six months ended in Jun. 2023 was $99.66 Mil. Therefore, Edgars Stores's Operating Margin % for the quarter that ended in Jun. 2023 was -25.35%.

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

XZIM:EDGR.ZW' s Operating Margin % Range Over the Past 10 Years
Min: -60.63   Med: 13.21   Max: 25.06
Current: -60.63


XZIM:EDGR.ZW's Operating Margin % is ranked worse than
96.49% of 1112 companies
in the Retail - Cyclical industry
Industry Median: 3.585 vs XZIM:EDGR.ZW: -60.63

Edgars Stores's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Edgars Stores's Operating Income for the six months ended in Jun. 2023 was $-25.26 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was $-54.43 Mil.

Warning Sign:

Edgars Stores Ltd has recorded a loss in operating income at least once over the past 3 years.


Edgars Stores Operating Margin % Historical Data

The historical data trend for Edgars Stores'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.

Edgars Stores Operating Margin % Chart

Edgars Stores Annual Data
Trend Dec09 Dec11 Dec12 Dec18 Dec19 Dec20 Dec21 Dec22
Operating Margin %
Get a 7-Day Free Trial -3.01 3.57 -12.66 25.06 22.94

Edgars Stores Semi-Annual Data
Jun11 Dec11 Jun12 Dec12 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
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 20.90 25.84 45.09 294.99 -25.35

Competitive Comparison of Edgars Stores's Operating Margin %

For the Apparel Retail subindustry, Edgars Stores'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.


Edgars Stores's Operating Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Edgars Stores's Operating Margin % distribution charts can be found below:

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



Edgars Stores 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.

Edgars Stores'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 )
=25.597 / 111.566
=22.94 %

Edgars Stores's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=-25.264 / 99.664
=-25.35 %

* 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.


Edgars Stores  (XZIM:EDGR.ZW) 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.


Edgars Stores Operating Margin % Related Terms

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Edgars Stores (XZIM:EDGR.ZW) Business Description

Traded in Other Exchanges
N/A
Address
Cnr Ninth Avenue / Herbert Chitepo Street, P.O. Box 894, Bulawayo, ZWE
Edgars Stores Ltd retails clothing, footwear, textiles, and accessories in Zimbabwe. The company also manufactures and sells a range of denim, as well as ladies', children's, and gents' casual wear to other retailers. The company has classified its products and services into six operating segments namely Retailing, Edgars, Jet, Manufacturing, Micro Finance, and Financial Services. The majority of the revenue is generated from the retail sales of its products. Its operations are spread across Zimbabwe.

Edgars Stores (XZIM:EDGR.ZW) Headlines

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