Five Below Inc (FIVE)

Operating profit margin

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Operating income (ttm)	US$ in thousands	385,571	342,898	347,709	345,126	345,043	306,850	328,365	358,522	379,880	361,912	343,712	290,686	154,803	129,296	117,732	120,619	217,284	88,731	106,468	95,145
Revenue (ttm)	US$ in thousands	3,559,373	3,344,383	3,253,012	3,162,958	3,076,307	2,949,889	2,912,500	2,890,127	2,848,354	2,710,536	2,579,505	2,359,061	1,962,137	1,790,753	1,691,577	1,682,867	1,846,730	1,472,423	1,442,719	1,321,641
Operating profit margin		10.83%	10.25%	10.69%	10.91%	11.22%	10.40%	11.27%	12.41%	13.34%	13.35%	13.32%	12.32%	7.89%	7.22%	6.96%	7.17%	11.77%	6.03%	7.38%	7.20%

February 3, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $385,571K ÷ $3,559,373K
= 10.83%

The operating profit margin of Five Below Inc has demonstrated some fluctuations over the past several quarters. The company's operating profit margin ranged from 6.03% to 13.35% during the period covered by the data.

In general, the operating profit margin measures the efficiency of a company in generating profits from its core operations. A higher operating profit margin indicates that the company is able to control its operating expenses effectively and generate more profit from each dollar of sales.

Five Below Inc's operating profit margin peaked at 13.35% in January 2022, showing a strong ability to generate profits relative to its operating costs at that time. However, there was a notable decline in the operating profit margin in the subsequent quarters, with the lowest point recorded at 6.03% in November 2019.

The fluctuations in the operating profit margin may be influenced by various factors such as changes in sales volume, pricing strategies, cost management, and economic conditions. Investors and stakeholders should closely monitor these trends in the operating profit margin to assess the company's operational efficiency and profitability over time.