The Cooper Companies Inc. (COO)
Operating profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 533,100 | 507,600 | 505,800 | 311,800 | 546,700 |
| Revenue | US$ in thousands | 3,487,900 | 3,229,100 | 2,893,900 | 2,392,900 | 2,575,500 |
| Operating profit margin | 15.28% | 15.72% | 17.48% | 13.03% | 21.23% |
October 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $533,100K ÷ $3,487,900K
= 15.28%
The operating profit margin indicates the efficiency of Cooper Companies, Inc. in managing its operating expenses relative to its sales. A higher margin implies better cost management and greater profitability from core business operations.
From the data provided, we observe a fluctuation in the operating profit margin of Cooper Companies, Inc. over the past five years. In 2019, the margin was at its highest at 19.90%, indicating strong operational efficiency and profitability. However, in 2020, the margin decreased to 12.83%, which may be indicative of higher operating expenses relative to sales or a decrease in sales volume.
In 2021, the operating profit margin increased to 17.31%, showing improvement in cost management or an increase in sales relative to expenses. However, in 2022 and 2023, the margin declined further to 15.34% and 14.84% respectively, potentially signaling increased operating expenses relative to sales.
The declining trend in the operating profit margin over the past two years may warrant further investigation into the company's cost structure and operational efficiency. Management should focus on controlling and optimizing operating expenses to improve profitability. Additionally, factors impacting sales volume and pricing strategies should be evaluated to ensure sustainable and robust financial performance in the coming periods.
Peer comparison
Oct 31, 2023