Acuity Brands Inc (AYI)
Operating profit margin
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 473,400 | 509,700 | 427,600 | 353,900 | 462,900 |
| Revenue | US$ in thousands | 3,913,100 | 3,981,400 | 3,461,000 | 3,326,300 | 3,672,700 |
| Operating profit margin | 12.10% | 12.80% | 12.35% | 10.64% | 12.60% |
August 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $473,400K ÷ $3,913,100K
= 12.10%
Acuity Brands, Inc.'s operating profit margin has shown relative stability over the past five years, averaging around 12.34%. The operating profit margin is a key indicator of a company's operational efficiency and pricing strategy. It reflects the proportion of revenue that remains after variable costs of production have been deducted.
The slight fluctuations in the operating profit margin over the years suggest that Acuity Brands has been able to effectively manage its operating expenses and maintain healthy pricing strategies to generate profits. The relatively consistent operating profit margin indicates a certain level of stability and efficiency in the company's operations, which can be seen as a positive sign for investors and creditors.
The increase in operating profit margin from 2020 to 2021, and then a slight decline in 2023, may indicate changes in the company's cost structure, revenue mix, or overall industry conditions. It would be important to further analyze the company's financial reports and management commentary to fully understand the drivers behind these changes.
Overall, the operating profit margin data suggests that Acuity Brands has been able to effectively manage its operating costs and maintain a consistent level of profitability over the years. However, any significant deviations from this trend should be carefully assessed to understand the underlying factors driving the changes.
Peer comparison
Aug 31, 2023