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Newegg Commerce (Newegg Commerce) Operating Margin % : -3.86% (As of Dec. 2023)


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What is Newegg Commerce Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Newegg Commerce's Operating Income for the three months ended in Dec. 2023 was $-17.6 Mil. Newegg Commerce's Revenue for the three months ended in Dec. 2023 was $456.1 Mil. Therefore, Newegg Commerce's Operating Margin % for the quarter that ended in Dec. 2023 was -3.86%.

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

NEGG' s Operating Margin % Range Over the Past 10 Years
Min: -4.75   Med: -2.35   Max: 1.41
Current: -4.71


NEGG's Operating Margin % is ranked worse than
81.3% of 1107 companies
in the Retail - Cyclical industry
Industry Median: 3.51 vs NEGG: -4.71

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

Newegg Commerce's Operating Income for the three months ended in Dec. 2023 was $-17.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-36.4 Mil.


Newegg Commerce Operating Margin % Historical Data

The historical data trend for Newegg Commerce'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.

Newegg Commerce Operating Margin % Chart

Newegg Commerce Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
-2.35 1.11 1.41 -2.88 -4.75

Newegg Commerce Quarterly Data
Dec19 Jun20 Sep20 Dec20 Jun21 Sep21 Dec21 Jun22 Sep22 Dec22 Jun23 Sep23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.79 -1.67 - -5.93 -3.86

Competitive Comparison of Newegg Commerce's Operating Margin %

For the Internet Retail subindustry, Newegg Commerce'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.


Newegg Commerce's Operating Margin % Distribution in the Retail - Cyclical Industry

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

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



Newegg Commerce 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.

Newegg Commerce'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 )
=-71.043 / 1496.963
=-4.75 %

Newegg Commerce's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-17.62 / 456.144
=-3.86 %

* 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.


Newegg Commerce  (NAS:NEGG) 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.


Newegg Commerce Operating Margin % Related Terms

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Newegg Commerce (Newegg Commerce) Business Description

Traded in Other Exchanges
Address
17560 Rowland Street, City of Industry, CA, USA, 91748
Newegg Commerce Inc is an e-commerce company offering direct sales and an online marketplace platform for IT computer components, consumer electronics, entertainment, smart home and gaming products and provides certain third-party logistics services globally.