DXC Technology Co (DXC)

Operating profit margin

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Operating income (ttm)	US$ in thousands	1,016,000	1,053,000	1,104,000	1,122,000	1,157,000	1,179,000	1,225,000	1,302,000	1,375,000	1,362,000	1,307,000	1,244,000	1,102,000	1,125,000	1,353,000	1,599,000	2,061,000	2,536,000	2,848,000	3,118,000
Revenue (ttm)	US$ in thousands	13,667,000	13,872,000	14,039,000	14,169,000	14,430,000	14,847,000	15,370,000	15,831,000	16,265,000	16,642,000	16,841,000	17,368,000	17,729,000	18,159,000	18,892,000	19,189,000	19,577,000	20,042,000	20,199,000	20,361,000
Operating profit margin		7.43%	7.59%	7.86%	7.92%	8.02%	7.94%	7.97%	8.22%	8.45%	8.18%	7.76%	7.16%	6.22%	6.20%	7.16%	8.33%	10.53%	12.65%	14.10%	15.31%

March 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,016,000K ÷ $13,667,000K
= 7.43%

The operating profit margin of DXC Technology Co has shown some fluctuations over the past few quarters. The margin stood at 7.43% as of March 31, 2024, down slightly from the previous quarter's figure of 7.59%. Looking back over the last two years, the trend has been generally declining from a high of 15.31% in June 2019 to the current level.

Although the recent margins have been in the range of 7-8%, the company experienced significantly higher margins in the past, with double-digit figures in 2019. The decreasing trend in the operating profit margin could indicate challenges in controlling costs relative to revenue or pressures on pricing and profitability.

It may be important for stakeholders to further investigate the drivers behind the declining margin trend to assess the company's operational efficiency, pricing strategy, and overall profitability sustainability.