Clean Harbors Inc (CLH)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 612,439 | 634,747 | 347,887 | 251,336 | 229,456 |
| Revenue | US$ in thousands | 5,395,620 | 5,168,640 | 3,803,030 | 3,139,310 | 3,409,670 |
| Operating profit margin | 11.35% | 12.28% | 9.15% | 8.01% | 6.73% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $612,439K ÷ $5,395,620K
= 11.35%
Clean Harbors, Inc.'s operating profit margin has demonstrated a general upward trend over the past five years, reflecting improving efficiency in generating profits from its core operations. The company's operating profit margin stood at 11.32% in 2023, a slight decrease from 12.29% in 2022 but significantly higher compared to 2019 when it was at 6.72%. This indicates that Clean Harbors has been able to effectively control its operating expenses relative to its revenue, resulting in a healthier margin. The 2023 margin of 11.32% suggests that for every dollar in revenue, the company is able to retain approximately 11.32 cents as operating profit after accounting for direct costs. Overall, Clean Harbors' improving operating profit margin trend is a positive indicator of its operational efficiency and potentially sustainable profitability.
Peer comparison
Dec 31, 2023