Healthcare Services Group Inc (HCSG)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -169,329 | -129,092 | -138,565 | -48,884 | -109,382 |
| Revenue | US$ in thousands | 1,664,880 | 1,690,840 | 1,641,960 | 1,760,300 | 1,837,420 |
| Operating profit margin | -10.17% | -7.63% | -8.44% | -2.78% | -5.95% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-169,329K ÷ $1,664,880K
= -10.17%
The operating profit margin of Healthcare Services Group, Inc. has fluctuated over the past five years. In 2023, the operating profit margin decreased to 2.87% from 3.17% in 2022, indicating a decline in the company's ability to generate profits from its core operations. This decrease follows a gradual downward trend since 2020, where the operating profit margin was at a relatively higher level of 6.66%. The declining trend suggests that the company may be facing challenges in managing operating expenses or increasing revenue to maintain profitability. Further analysis of the company's cost structure and revenue generation strategies would be beneficial in understanding the factors influencing these fluctuations in the operating profit margin over the years.