What does operating margin mean?

Operating income as a percentage of revenue (trailing twelve months). Captures profitability from core operations after both cost of revenue and operating expenses, but before interest and taxes.

Diamondrock Hospitality Company DRH Operating margin

Discontinued — last reported Q3 '18

Operating margin at other companies

Host Hotels & ResortsHST

14.4%-0.5pp

AirbnbABNB

20.5%-1.7pp

Xenia Hotels & ResortsXHR

10.4%+1.5pp

Park Hotels & Resorts Inc.PK

0.9%-10.9pp

Apple HospitalityAPLE

17.9%-1.1pp

Pebblebrook Hotel TrustPEB

3.9%—

Other financials

Income statement

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Revenue$258.2M+1.3%

Net income$14.5M+22.0%

EPS (diluted)$0.07+75.0%

Balance sheet

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Cash & equivalents$39.3M-60.9%

Total debt$1.2B+1.4%

Total equity$1.4B-7.5%

Total assets$3.0B-3.0%

Cash flow

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Operating cash flow$21.9M-20.5%

CapEx$20.8M-18.6%

Free cash flow$1.1M-44.9%

Valuation

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Market cap$2.52B+19.0%

Enterprise value$3.67B+14.3%

P/E24.2×—

P/S2.2×+0.4×

Profitability

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Net margin9.3%—

FCF margin14.3%+2.6pp

Returns & leverage

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Return on equity6.9%—

Debt / equity0.8×+0.1×

Where this comes from

Calculated from Diamondrock Hospitality Company ’s reported figures.

operating income/total revenue=15.5%

Based on trailing twelve months.

The official record: Diamondrock Hospitality Company ’s 10-Q, filed November 6, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does operating margin mean?: Operating income as a percentage of revenue (trailing twelve months). Captures profitability from core operations after both cost of revenue and operating expenses, but before interest and taxes.