Graco Inc (GGG)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 646,843 | 572,700 | 531,323 | 391,718 | 424,456 |
| Revenue | US$ in thousands | 2,195,610 | 2,143,520 | 1,987,610 | 1,650,120 | 1,646,040 |
| Operating profit margin | 29.46% | 26.72% | 26.73% | 23.74% | 25.79% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $646,843K ÷ $2,195,610K
= 29.46%
Graco Inc's operating profit margin has exhibited a positive trend over the past five years, showing a consistent improvement from 25.79% in 2019 to 29.46% in 2023. This signifies that the company has been able to effectively manage its operating expenses in relation to its revenue generation during this period. The steady increase in operating profit margin indicates a growing efficiency in cost control and operational performance, which is a positive indicator of the company's overall financial health and management effectiveness. It suggests that Graco Inc has been successful in optimizing its operations, resulting in a higher proportion of revenue translating into operating profit. This trend may be attributed to various factors such as improved cost management strategies, revenue growth, operational efficiency, or economies of scale. Overall, the consistent improvement in operating profit margin reflects positively on Graco Inc's ability to generate profits from its core business operations.
Peer comparison
Dec 31, 2023