Deluxe Corporation (DLX)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 192,176 | 160,791 | 169,400 | 204,100 | 227,600 |
| Revenue | US$ in thousands | 2,121,760 | 2,192,260 | 2,238,000 | 2,022,200 | 1,790,800 |
| Operating profit margin | 9.06% | 7.33% | 7.57% | 10.09% | 12.71% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $192,176K ÷ $2,121,760K
= 9.06%
Deluxe Corporation's operating profit margin has shown a declining trend over the past five years, starting at 12.71% on December 31, 2020, and decreasing to 10.09% on December 31, 2021, and further dropping to 7.57% on December 31, 2022. There was a slight recovery to 7.33% on December 31, 2023, before improving to 9.06% on December 31, 2024. This fluctuation in operating profit margin indicates potential challenges in the company's ability to generate profits from its core business operations. Management should closely monitor and address the factors influencing these fluctuations to sustain and improve profitability in the future.