Chesapeake Utilities Corporation (CPK)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 150,803 | 142,933 | 131,112 | 112,723 | 106,285 |
| Revenue | US$ in thousands | 670,604 | 680,704 | 569,968 | 488,198 | 479,605 |
| Operating profit margin | 22.49% | 21.00% | 23.00% | 23.09% | 22.16% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $150,803K ÷ $670,604K
= 22.49%
To analyze Chesapeake Utilities Corp's operating profit margin over the past five years, we observe an increasing trend from 2019 to 2020, with a slight dip in 2022 followed by a rebound in 2023. The operating profit margin measures the company's efficiency in generating profits from its core operations, excluding non-operating expenses.
In 2023, Chesapeake Utilities Corp attained an operating profit margin of 24.03%, signifying that for every dollar of revenue generated, the company retained 24.03 cents as operating profit after accounting for the operating expenses. This improvement from the previous year demonstrates the company's ability to effectively control costs and enhance operational efficiency.
Comparing to the industry benchmarks, a higher operating profit margin indicates better profitability and operational performance. The company's consistent levels above 20% in recent years suggest a solid operational foundation and effective cost management practices, which bode well for sustaining profitability in the long term.
However, it is essential for Chesapeake Utilities Corp to continue monitoring and optimizing its operational processes to maintain or even improve its operating profit margin further in the future, ensuring continued financial health and value creation for its stakeholders.
Peer comparison
Dec 31, 2023