Calavo Growers Inc (CVGW)
Operating profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 428 | 5,987 | -9,997 | 32,162 | 71,046 |
| Revenue | US$ in thousands | 967,829 | 1,188,450 | 1,063,150 | 1,022,360 | 1,197,400 |
| Operating profit margin | 0.04% | 0.50% | -0.94% | 3.15% | 5.93% |
October 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $428K ÷ $967,829K
= 0.04%
The operating profit margin of Calavo Growers, Inc has exhibited a declining trend over the past five years. In 2019, the operating profit margin stood at a robust 5.77%, reflecting strong operational efficiency and profitability. However, this figure decreased to 3.02% in 2020, indicating a decline in the company's ability to generate profits from its core business activities. The trend continued in subsequent years, with operating profit margins of 0.07% in 2021, 0.68% in 2022, and further dropped to 0.37% in 2023.
This declining trend in operating profit margin suggests potential challenges in controlling operating expenses relative to revenue generation. It may also indicate a reduced ability to convert sales into profits, which could be a cause for concern. Investors and stakeholders may scrutinize the company's cost management strategies and operational efficiency to understand the reasons behind this trend and evaluate the company's long-term profitability prospects.