HealthStream Inc (HSTM)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 21,287 | 16,019 | 12,449 | 8,055 | 15,818 |
| Revenue | US$ in thousands | 291,646 | 279,063 | 266,826 | 256,712 | 244,826 |
| Operating profit margin | 7.30% | 5.74% | 4.67% | 3.14% | 6.46% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $21,287K ÷ $291,646K
= 7.30%
HealthStream Inc's operating profit margin has shown fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The margin decreased from 6.46% in 2020 to 3.14% in 2021, indicating a decline in the company's ability to generate profit from its core operations. However, there was a subsequent improvement in the margin to 4.67% in 2022, 5.74% in 2023, and a further increase to 7.30% in 2024.
The overall trend suggests that HealthStream Inc has been able to enhance its operating efficiency and profitability over the period under consideration. The increase in operating profit margin indicates that the company has been able to control its operating expenses and generate more profit relative to its revenue. This may be attributed to various factors such as cost-cutting measures, operational improvements, or revenue growth outpacing expenses.
It is important for investors and stakeholders to monitor the operating profit margin as it provides insights into the company's operational performance and efficiency in generating profit from its core business activities. The upward trend seen in HealthStream Inc's operating profit margin indicates a positive trajectory for the company's financial health and potential for sustained profitability in the future.
Peer comparison
Dec 31, 2024