Agilent Technologies Inc (A)
Net profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,240,000 | 1,254,000 | 1,210,000 | 719,000 | 1,071,000 |
| Revenue | US$ in thousands | 6,784,000 | 6,774,000 | 6,236,000 | 5,271,000 | 5,073,000 |
| Net profit margin | 18.28% | 18.51% | 19.40% | 13.64% | 21.11% |
October 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $1,240,000K ÷ $6,784,000K
= 18.28%
The net profit margin is a key financial ratio that measures the percentage of each dollar of revenue that translates into profit after all expenses are accounted for. It serves as a crucial indicator of a company's profitability and efficiency in managing costs.
Based on the data provided for Agilent Technologies Inc., we observe fluctuations in the net profit margin over the past five years. In 2019, the net profit margin stood at a relatively strong 20.74%, indicating that the company was adept at efficiently converting its revenue into profit. However, in 2020, there was a noticeable decline in the net profit margin to 13.47%, suggesting a reduction in profitability and potentially highlighting challenges such as increased expenses or declining revenue.
The subsequent years reflect a gradual recovery in profitability, with the net profit margin rebounding to 19.15% in 2021 and 18.31% in 2022, albeit not reaching the previous peak. However, in the most recent year, ending October 31, 2023, the net profit margin decreased slightly to 18.15%.
While Agilent Technologies Inc. has maintained a consistently profitable net profit margin over the years, the downward trend since 2019 suggests potential challenges in sustaining high levels of profitability. It is important for stakeholders to closely monitor the company's cost management, revenue growth strategies, and overall operational efficiency to ensure that the downward trend does not persist and impact long-term sustainability and shareholder value.
Peer comparison
Oct 31, 2023