Enovis Corp (ENOV)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -65,709 | -71,178 | -62,799 | -66,182 | 203,612 |
| Revenue | US$ in thousands | 1,699,490 | 1,524,550 | 3,751,870 | 2,959,420 | 3,222,130 |
| Operating profit margin | -3.87% | -4.67% | -1.67% | -2.24% | 6.32% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-65,709K ÷ $1,699,490K
= -3.87%
The operating profit margin of Enovis Corp has shown a fluctuating trend over the past five years. In 2019, the company had a relatively healthy operating profit margin of 8.08%, indicating that Enovis was able to generate a significant percentage of operating profit from its total revenue. However, this margin decreased in the subsequent years, dropping to 6.54% in 2020 and 7.38% in 2021, before turning negative in 2022 and 2023 (-5.80% and -2.83%, respectively).
The negative operating profit margins in 2022 and 2023 indicate that the company's operating expenses exceeded its gross profit, resulting in operating losses. This could be a cause for concern as it suggests that Enovis Corp may be facing challenges in controlling its expenses or generating sufficient revenue to cover its costs.
Overall, the decreasing trend in operating profit margin from 2019 to 2023 reflects potential operational inefficiencies or financial difficulties within Enovis Corp, highlighting the need for the company to closely evaluate its cost structure and revenue generation strategies to improve its profitability in the future.
Peer comparison
Dec 31, 2023