Margin volatility
The standard deviation of operating margin across the fiscal years on file, in percentage points.
Formula
Margin volatility = standard deviation of operating margin across the fiscal years on file
How to read it
Lower is steadier: the stability grade scores 1 point best and 10 worst, and above 7 points is listed as a concern.
How to use it
A cyclical business is not a bad business, but it is a riskier one to buy at the top of its cycle.
Also called: margin durability, margin stability.