Topbuild Corp (BLD)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 878,825 | 797,164 | 476,419 | 355,046 | 289,523 |
| Revenue | US$ in thousands | 5,121,100 | 4,950,980 | 3,442,500 | 2,686,160 | 2,585,470 |
| Operating profit margin | 17.16% | 16.10% | 13.84% | 13.22% | 11.20% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $878,825K ÷ $5,121,100K
= 17.16%
TopBuild Corp's operating profit margin has shown a consistent positive trend over the past five years, indicating an improvement in the company's operational efficiency and profitability. The operating profit margin increased from 11.03% in 2019 to 16.92% in 2023, demonstrating a steady growth trajectory. This suggests that the company has been successful in controlling its operating expenses relative to its revenue, resulting in a healthier bottom line. The upward trend in the operating profit margin reflects TopBuild Corp's ability to generate more operating profit from each dollar of sales, which could be attributed to effective cost management strategies or revenue growth outpacing cost increases. Overall, the improving trend in the operating profit margin indicates the company's strength in managing its operations efficiently and effectively.