Digi International Inc (DGII)

Operating profit margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Operating income	US$ in thousands	50,095	38,220	10,528	11,317	10,072
Revenue	US$ in thousands	444,849	388,225	308,632	279,271	254,203
Operating profit margin		11.26%	9.84%	3.41%	4.05%	3.96%

September 30, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $50,095K ÷ $444,849K
= 11.26%

The operating profit margin of Digi International, Inc. has shown a consistent improvement over the past five years. In 2019, the operating profit margin was 3.93%, which increased to 4.09% in 2020 and further improved to 3.73% in 2021. This upward trend continued as the operating profit margin rose to 8.32% in 2022 and reached 11.26% in 2023. The steady improvement in the operating profit margin indicates that the company has been effectively managing its operating expenses and generating higher profits from its core business activities. This suggests a positive trend in the company's operational efficiency and could be a result of cost control measures, increased productivity, or improved pricing strategies. This increasing trend in operating profit margin reflects positively on the company's overall financial performance and efficiency.