Agilent Technologies Inc (A)
Operating profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,350,000 | 1,618,000 | 1,347,000 | 846,000 | 941,000 |
| Revenue | US$ in thousands | 6,784,000 | 6,774,000 | 6,236,000 | 5,271,000 | 5,073,000 |
| Operating profit margin | 19.90% | 23.89% | 21.60% | 16.05% | 18.55% |
October 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,350,000K ÷ $6,784,000K
= 19.90%
Agilent Technologies Inc.'s operating profit margin measures the company's operating efficiency and its ability to control costs. It is calculated as operating income divided by revenue and is presented as a percentage. Analyzing the trend in Agilent's operating profit margin over the past five years provides valuable insights into the company's financial performance.
The operating profit margin for Agilent Technologies Inc. has shown fluctuations over the past five years. In 2019, the operating profit margin stood at 18.23%, indicating that the company earned $0.1823 in operating profit for every $1 of revenue. Subsequently, in 2020, there was a slight decrease in the operating profit margin to 15.85%, reflecting a decrease in efficiency in controlling operating costs.
However, in the following years, the operating profit margin displayed a positive trend. By 2021, the margin increased to 21.32%, showcasing improved operational efficiency and cost control measures. This trend continued into 2022, with the operating profit margin further rising to 23.63%, indicative of Agilent's ability to generate higher operating income relative to its revenue.
Nevertheless, in 2023, the operating profit margin decreased to 19.76%. While still reflecting a relatively strong operational performance, this decrease suggests that Agilent faced challenges in controlling operating costs relative to its revenue during this period.
It is important to assess the reasons behind the fluctuations in Agilent's operating profit margin, considering potential factors such as changes in the cost structure, pricing strategies, operational efficiency, or changes in revenue. Additionally, comparing Agilent's operating profit margin with industry benchmarks and peers can provide further context for evaluating the company's performance.
In conclusion, Agilent Technologies Inc.'s operating profit margin has experienced fluctuations over the past five years, but the company generally demonstrated an ability to maintain a healthy level of operational efficiency and cost control. Further analysis of the underlying factors driving these fluctuations would provide a deeper understanding of Agilent's financial performance.
Peer comparison
Oct 31, 2023