
Rolls-Royce Holdings PLC
LSE:RR

Operating Margin
Rolls-Royce Holdings PLC
Operating Margin represents how efficiently a company is able to generate profit through its core operations.
Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.
Operating Margin Across Competitors
Country | Company | Market Cap |
Operating Margin |
||
---|---|---|---|---|---|
UK |
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Rolls-Royce Holdings PLC
LSE:RR
|
64.1B GBP |
12%
|
|
US |
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RTX Corp
LSE:0R2N
|
177.5B USD |
7%
|
|
US |
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Raytheon Technologies Corp
NYSE:RTX
|
175.5B USD |
7%
|
|
NL |
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Airbus SE
PAR:AIR
|
128.7B EUR |
7%
|
|
US |
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Boeing Co
NYSE:BA
|
129.8B USD |
-16%
|
|
FR |
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Safran SA
PAR:SAF
|
102.4B EUR |
14%
|
|
US |
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Lockheed Martin Corp
NYSE:LMT
|
104.2B USD |
10%
|
|
US |
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TransDigm Group Inc
NYSE:TDG
|
77.2B USD |
47%
|
|
US |
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Northrop Grumman Corp
NYSE:NOC
|
74.2B USD |
11%
|
|
US |
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General Dynamics Corp
NYSE:GD
|
72.7B USD |
10%
|
|
DE |
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Rheinmetall AG
XETRA:RHM
|
56.7B EUR |
14%
|
Rolls-Royce Holdings PLC
Glance View
Rolls-Royce Holdings PLC is a testament to British innovation, crafting a legacy that transcends the brand's storied history rooted in luxury automobiles. Originally founded in 1904, the company has since evolved, pivoting its core business towards the engineering and manufacturing of power systems. Today, Rolls-Royce Holdings PLC operates as a multinational public company with a strategy centered on producing engines for aerospace, marine, and industrial applications. This transition highlights a meticulous expansion beyond their renowned motorcars into becoming an integral player in the global aerospace market. Making strides as a leader in sophisticated engineering, the company focuses on designing and ongoing servicing of power systems that are both efficient and sustainable. Through this, Rolls-Royce generates revenue, primarily from the sale of its advanced turbine engines and the long-term service contracts associated with them. The company's financial heartbeat stems from creating some of the most advanced technology in the aviation sector. Rolls-Royce's Trent engine series, used in commercial airline fleets worldwide, showcases its prowess in innovation and precision engineering. These engines are fundamental to their revenue model, as they are not only sold to prestigious airlines but also supported through extensive service contracts that ensure long-term engagement and recurrent income. These contracts account for a significant portion of Rolls-Royce's revenue, as regular maintenance, repairs, and updates are not just necessary but essential to keeping the airplanes operating seamlessly and efficiently. Furthermore, Rolls-Royce's commitment to research and development underpins its competitive edge, allowing it to offer cutting-edge solutions like hybrid-electric propulsion systems, aligning its tradition of technological excellence with the movement towards greener aviation.

See Also
Operating Margin represents how efficiently a company is able to generate profit through its core operations.
Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.
Based on Rolls-Royce Holdings PLC's most recent financial statements, the company has Operating Margin of 12.3%.