HealthStream Inc (HSTM)

Operating profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	16,016	14,839	12,358	11,303	12,447	8,910	8,313	8,791	8,056	9,653	11,002	11,875	15,819	18,018	18,632	16,596	14,721	14,222	15,135	17,131
Revenue (ttm)	US$ in thousands	279,064	277,019	273,965	270,405	266,826	262,607	259,413	258,591	256,692	254,193	250,985	246,722	244,826	245,703	247,270	250,498	254,113	251,243	248,718	241,945
Operating profit margin		5.74%	5.36%	4.51%	4.18%	4.66%	3.39%	3.20%	3.40%	3.14%	3.80%	4.38%	4.81%	6.46%	7.33%	7.54%	6.63%	5.79%	5.66%	6.09%	7.08%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $16,016K ÷ $279,064K
= 5.74%

Healthstream Inc's operating profit margin has shown a generally increasing trend over the past eight quarters, indicating improved efficiency in generating profits from its core operations. The company experienced a significant jump in operating profit margin from Q1 2022 to Q2 2022, followed by a relatively stable performance in the subsequent quarters. This trend suggests that Healthstream has been able to effectively control its operating expenses and boost profitability over time. However, it is worth noting that the margins are still relatively low compared to industry benchmarks, indicating potential room for further improvement in cost management strategies. Overall, the increasing trend in operating profit margin reflects positively on Healthstream's operational performance and profitability.