HealthStream Inc (HSTM)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	21,288	20,855	19,220	18,817	16,018	14,841	12,360	11,305	12,449	8,910	8,313	8,791	8,056	9,653	11,002	11,875	15,819	18,019	18,633	16,597
Revenue (ttm)	US$ in thousands	291,646	287,991	285,235	282,877	279,063	277,019	273,965	270,405	266,826	262,628	259,434	258,612	256,713	254,193	250,985	246,722	244,826	245,703	247,270	250,498
Operating profit margin		7.30%	7.24%	6.74%	6.65%	5.74%	5.36%	4.51%	4.18%	4.67%	3.39%	3.20%	3.40%	3.14%	3.80%	4.38%	4.81%	6.46%	7.33%	7.54%	6.63%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $21,288K ÷ $291,646K
= 7.30%

HealthStream Inc's operating profit margin has shown fluctuations over the past few years. The margin started at 6.63% as of March 31, 2020, and reached its peak of 7.54% by June 30, 2020. However, it then experienced a decline, dropping to 3.80% by September 30, 2021.

Subsequently, there was a gradual improvement in the operating profit margin, reaching 7.30% as of December 31, 2024. The trend indicates some volatility in the company's operating efficiency and profitability over the analyzed periods.

It is essential for HealthStream Inc to continue monitoring and managing its operating expenses effectively to sustain or improve its operating profit margin in the future. This ratio is crucial as it reflects the company's ability to control costs and generate profits from its core operations.