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Wuxi AppTec Co (SHSE:603259) Operating Margin % : 27.62% (As of Dec. 2023)


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What is Wuxi AppTec Co Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Wuxi AppTec Co's Operating Income for the three months ended in Dec. 2023 was ¥2,983 Mil. Wuxi AppTec Co's Revenue for the three months ended in Dec. 2023 was ¥10,799 Mil. Therefore, Wuxi AppTec Co's Operating Margin % for the quarter that ended in Dec. 2023 was 27.62%.

Good Sign:

Wuxi AppTec Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

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

SHSE:603259' s Operating Margin % Range Over the Past 10 Years
Min: 10.36   Med: 20.36   Max: 29.17
Current: 29.17


SHSE:603259's Operating Margin % is ranked better than
96.46% of 226 companies
in the Medical Diagnostics & Research industry
Industry Median: -5.15 vs SHSE:603259: 29.17

Wuxi AppTec Co's 5-Year Average Operating Margin % Growth Rate was 7.00% per year.

Wuxi AppTec Co's Operating Income for the three months ended in Dec. 2023 was ¥2,983 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was ¥11,766 Mil.


Wuxi AppTec Co Operating Margin % Historical Data

The historical data trend for Wuxi AppTec Co'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.

Wuxi AppTec Co Operating Margin % Chart

Wuxi AppTec Co 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 20.36 20.16 20.35 24.77 29.17

Wuxi AppTec Co 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 25.17 27.17 30.55 31.14 27.62

Competitive Comparison of Wuxi AppTec Co's Operating Margin %

For the Diagnostics & Research subindustry, Wuxi AppTec Co'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.


Wuxi AppTec Co's Operating Margin % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Wuxi AppTec Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Wuxi AppTec Co's Operating Margin % falls into.



Wuxi AppTec Co 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.

Wuxi AppTec Co'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 )
=11766.489 / 40340.807
=29.17 %

Wuxi AppTec Co'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 )
=2982.831 / 10799.481
=27.62 %

* 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.


Wuxi AppTec Co  (SHSE:603259) 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.


Wuxi AppTec Co Operating Margin % Related Terms

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Wuxi AppTec Co (SHSE:603259) Business Description

Traded in Other Exchanges
Address
288 Fute Zhong Road, Waigaoqiao Free Trade Zone, Shanghai, CHN, 200131
Wuxi AppTec Co Ltd provides a portfolio of research and manufacturing services through the discovery, development, and manufacturing spectrum for small-molecule drugs, cell therapies, and gene therapies as well as providing testing services for medical devices. Its segments comprise China-based laboratory services; U.S.-based laboratory services; Clinical research and other CRO services; CDMO services; and Others. The majority of revenue gets derived from China-based laboratory services that include small molecules discovery, such as synthetic chemistry, medicinal chemistry, analytical chemistry, biology, drug metabolism and pharmacokinetics (DMPK)/absorption, distribution, metabolism, and excretion (ADME), toxicology and bioanalytical services.

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