Deluxe Corporation (DLX)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 160,791 | 169,446 | 142,154 | 40,729 | -188,251 |
| Revenue | US$ in thousands | 2,192,260 | 2,238,010 | 2,022,200 | 1,790,780 | 2,008,720 |
| Operating profit margin | 7.33% | 7.57% | 7.03% | 2.27% | -9.37% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $160,791K ÷ $2,192,260K
= 7.33%
The operating profit margin of Deluxe Corp. has exhibited a downward trend over the past five years. It decreased from 15.14% in December 2019 to 9.42% in December 2023. This decline suggests a decrease in the company's ability to generate profits from its core business operations over time. Factors contributing to this trend could include increasing operating expenses relative to revenue, pricing pressures, or changes in the business's cost structure. It is essential for Deluxe Corp. to identify and address the root causes of this decline to improve its profitability in the future.