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Ultrapar Participacoes (Ultrapar Participacoes) Operating Margin % : 5.68% (As of Dec. 2023)


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What is Ultrapar Participacoes Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Ultrapar Participacoes's Operating Income for the three months ended in Dec. 2023 was $387 Mil. Ultrapar Participacoes's Revenue for the three months ended in Dec. 2023 was $6,821 Mil. Therefore, Ultrapar Participacoes's Operating Margin % for the quarter that ended in Dec. 2023 was 5.68%.

Good Sign:

Ultrapar Participacoes SA operating margin is expanding. Margin expansion is usually a good sign.

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

UGP' s Operating Margin % Range Over the Past 10 Years
Min: 1.46   Med: 2.88   Max: 3.95
Current: 3.58


UGP's Operating Margin % is ranked worse than
61.54% of 975 companies
in the Oil & Gas industry
Industry Median: 8.04 vs UGP: 3.58

Ultrapar Participacoes's 5-Year Average Operating Margin % Growth Rate was 3.70% per year.

Ultrapar Participacoes's Operating Income for the three months ended in Dec. 2023 was $387 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $912 Mil.


Ultrapar Participacoes Operating Margin % Historical Data

The historical data trend for Ultrapar Participacoes'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.

Ultrapar Participacoes Operating Margin % Chart

Ultrapar Participacoes 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 2.42 1.95 1.46 2.21 3.53

Ultrapar Participacoes Quarterly Data
Mar19 Jun19 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 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 3.85 1.87 1.60 4.82 5.68

Competitive Comparison of Ultrapar Participacoes's Operating Margin %

For the Oil & Gas Refining & Marketing subindustry, Ultrapar Participacoes'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.


Ultrapar Participacoes's Operating Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Ultrapar Participacoes's Operating Margin % distribution charts can be found below:

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



Ultrapar Participacoes 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.

Ultrapar Participacoes'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 )
=906.972 / 25725.275
=3.53 %

Ultrapar Participacoes'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 )
=387.487 / 6820.865
=5.68 %

* 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.


Ultrapar Participacoes  (NYSE:UGP) 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.


Ultrapar Participacoes Operating Margin % Related Terms

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Ultrapar Participacoes (Ultrapar Participacoes) Business Description

Address
Brigadeiro Luis Antonio Avenue, 1343, Sao Paulo, SP, BRA, 01317-910
Ultrapar Participacoes SA engages in the investment of its own capital in services, commercial, industrial activities, through the subscription or acquisition of shares of other companies. The Company has three business segments: gas distribution, fuel distribution and storage. The gas distribution segment (Ultragaz) distributes LPG to residential, commercial, and industrial consumers, especially in the South, Southeast, and Northeast regions of Brazil. The fuel distribution segment operates the distribution and marketing of gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles, and lubricants and related activities throughout all the Brazilian territory. The storage segment operates liquid bulk terminals, especially in the Southeast and Northeast regions of Brazil.