EPAM Systems Inc (EPAM)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 544,584 | 501,239 | 572,966 | 542,316 | 379,324 |
| Revenue | US$ in thousands | 4,727,940 | 4,690,540 | 4,824,700 | 3,758,140 | 2,659,480 |
| Operating profit margin | 11.52% | 10.69% | 11.88% | 14.43% | 14.26% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $544,584K ÷ $4,727,940K
= 11.52%
EPAM Systems Inc's operating profit margin has shown some fluctuations over the years based on the provided data. The margin was relatively stable between December 31, 2020, and December 31, 2021, increasing slightly from 14.26% to 14.43%. However, there was a noticeable decline in the operating profit margin in the subsequent years. By December 31, 2024, the margin had decreased to 11.52%.
The declining trend in the operating profit margin from 2021 onwards suggests that EPAM Systems Inc may be facing challenges in controlling its operating expenses relative to its revenue generation. This trend could be a point of concern for investors and stakeholders as it may indicate potential inefficiencies or cost pressures within the company.
It would be advisable for EPAM Systems Inc to closely analyze its cost structure, identify areas for cost optimization, and possibly explore revenue enhancement strategies to improve its operating profit margin and ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2024