Healthcare Services Group Inc (HCSG)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 53,271 | 62,358 | 53,496 | 31,048 | 90,962 |
| Revenue | US$ in thousands | 1,715,680 | 1,671,390 | 1,690,180 | 1,641,960 | 1,760,300 |
| Operating profit margin | 3.10% | 3.73% | 3.17% | 1.89% | 5.17% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $53,271K ÷ $1,715,680K
= 3.10%
The operating profit margin of Healthcare Services Group Inc has experienced fluctuations over the past five years. In December 2020, the operating profit margin stood at 5.17%, indicating that the company generated $0.052 in operating profit for every dollar of revenue. However, there was a notable decline in the operating profit margin by the end of December 2021, dropping to 1.89%. This suggests that the company's operating expenses increased relative to its revenue during that period.
Subsequently, there was a slight improvement in the operating profit margin by December 2022, reaching 3.17%. This uptick may indicate better cost management or an increase in revenue compared to the prior year. In December 2023, the operating profit margin further improved to 3.73%, showing a positive trend in the company's profitability.
However, by the end of December 2024, the operating profit margin decreased to 3.10%, signaling a slight regression in the company's ability to convert revenue into operating profit. Overall, the fluctuations in Healthcare Services Group Inc's operating profit margin reflect changes in operational efficiency, cost structure, and revenue performance over the five-year period.