Allegion PLC (ALLE)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 708,400 | 586,400 | 530,200 | 403,500 | 565,100 |
| Revenue | US$ in thousands | 3,553,800 | 3,186,000 | 2,820,400 | 2,668,100 | 2,763,400 |
| Operating profit margin | 19.93% | 18.41% | 18.80% | 15.12% | 20.45% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $708,400K ÷ $3,553,800K
= 19.93%
Allegion plc has demonstrated a stable trend in its operating profit margin over the past five years, ranging from 17.92% to 19.97%. The company's operating profit margin increased in 2022 but slightly dipped in 2023 to 19.61%. This indicates that Allegion plc has effectively managed its operating expenses relative to its revenue, leading to a healthy level of profitability. It is important for the company to continue monitoring and optimizing its operational efficiency to sustain or improve its operating profit margin in the future.