Box Inc (BOX)

Operating profit margin

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020
Operating income (ttm) US$ in thousands 79,634 82,862 70,830 60,425 50,753 49,299 51,286 44,551 36,840 16,964 -7,489 -16,739 -27,626 -30,738 -22,265 -23,665 -37,642 -62,945 -99,564 -128,331
Revenue (ttm) US$ in thousands 1,090,130 1,073,488 1,059,112 1,050,501 1,037,741 1,031,339 1,019,753 1,004,340 990,874 967,759 941,852 910,323 874,332 839,884 811,843 789,650 770,770 755,442 736,595 716,851
Operating profit margin 7.31% 7.72% 6.69% 5.75% 4.89% 4.78% 5.03% 4.44% 3.72% 1.75% -0.80% -1.84% -3.16% -3.66% -2.74% -3.00% -4.88% -8.33% -13.52% -17.90%

January 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $79,634K ÷ $1,090,130K
= 7.31%

Box Inc's operating profit margin has shown a significant improvement over the past few years, reflecting better operational efficiency and cost management. The margin was negative in the earlier periods, indicating that the company's operating expenses were exceeding its revenues. However, starting from October 31, 2022, the trend reversed as the operating profit margin turned positive.

After reaching a low of -3.66% on January 31, 2022, the margin started to improve steadily and reached 7.31% by January 31, 2025. This upward trend signifies that Box Inc has been able to control its costs, enhance revenue generation, or both. A rising operating profit margin is a positive sign for investors, as it indicates that the company is becoming more profitable from its core business operations.

Overall, the improvement in Box Inc's operating profit margin demonstrates the company's efforts to enhance its operational efficiency and effectively manage its costs, leading to a healthier financial performance. It suggests that the company is moving towards a more stable and profitable position in the market.