Avantor Inc (AVTR)

Operating profit margin

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	715,600	611,500	696,400	764,900	830,500	1,054,400	1,130,200	1,092,400	1,053,800	1,012,900	972,200	962,800	902,800	814,700	706,800	654,100	620,100	572,600
Revenue (ttm)	US$ in thousands	6,825,600	6,866,700	6,967,200	7,039,400	7,175,700	7,342,300	7,512,400	7,625,000	7,602,800	7,550,900	7,386,100	7,269,400	7,040,100	6,660,200	6,393,600	6,126,700	6,025,500	6,079,200
Operating profit margin		10.48%	8.91%	10.00%	10.87%	11.57%	14.36%	15.04%	14.33%	13.86%	13.41%	13.16%	13.24%	12.82%	12.23%	11.05%	10.68%	10.29%	9.42%

June 30, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $715,600K ÷ $6,825,600K
= 10.48%

The operating profit margin of Avantor Inc has shown some fluctuations over the past few quarters. It peaked at 15.04% in March 2023 but has since declined, reaching 10.48% in June 2024. Despite this recent decrease, the company has generally maintained operating profit margins above 10% in the past several quarters, indicating a consistent ability to generate profits from its core business operations.

It is worth noting that the operating profit margin is a key financial ratio that reflects the company's efficiency in managing its operating expenses relative to its sales. A higher operating profit margin indicates that the company is able to control costs effectively and generate more profit from its operations. Conversely, a lower operating profit margin may suggest potential inefficiencies in cost management or pricing strategies.

Overall, while Avantor Inc has experienced some fluctuations in its operating profit margin, maintaining margins above 10% demonstrates a generally healthy financial performance in terms of generating profits from its core business activities. Tracking this ratio over time can provide valuable insights into the company's operational efficiency and financial health.