Greif Bros Corporation (GEF)
Operating profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 605,500 | 621,200 | 585,200 | 304,900 | 399,100 |
| Revenue | US$ in thousands | 5,270,000 | 6,333,800 | 5,654,500 | 4,538,400 | 4,583,900 |
| Operating profit margin | 11.49% | 9.81% | 10.35% | 6.72% | 8.71% |
October 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $605,500K ÷ $5,270,000K
= 11.49%
The operating profit margin of Greif Inc has shown a generally positive trend over the past five years. The operating profit margin, which measures the company's operating efficiency and profitability, has increased from 9.85% in 2019 to 11.44% in 2023. This indicates that for every dollar of revenue generated, the company has been able to increase its operating profit.
The consistent improvement in operating profit margin reflects the company's effective cost management and operational efficiency. A rising operating profit margin is often a positive sign, demonstrating the company's ability to control costs and generate higher profits from its core business operations.
It is worth noting that the operating profit margin fluctuated slightly from 2019 to 2023, with a low of 8.83% in 2020 and a high of 11.44% in 2023. These fluctuations may indicate the impact of economic conditions, industry trends, or company-specific factors on the company's profitability.
Overall, the increasing trend in the operating profit margin suggests that Greif Inc has been successful in managing its operating expenses and improving its profitability over the past five years. However, it is important to monitor this metric in the future to ensure continued financial health and efficiency.