Innospec Inc (IOSP)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	139,000	133,000	93,000	28,600	112,100
Revenue	US$ in thousands	1,948,800	1,963,700	1,483,400	1,192,300	1,512,300
Net profit margin		7.13%	6.77%	6.27%	2.40%	7.41%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $139,000K ÷ $1,948,800K
= 7.13%

Over the past five years, Innospec Inc's net profit margin has exhibited variability. In 2020, the company's net profit margin was relatively low at 2.41%, indicating that a smaller portion of its revenue translated into bottom-line profit. Subsequently, there was a noticeable improvement in 2021 and 2022, with net profit margins of 6.28% and 6.77% respectively, signifying enhanced efficiency in cost management or revenue generation. However, in 2023, the net profit margin increased further to 7.14%, reaching a level similar to that of 2019 when it was 7.41%. This suggests that Innospec Inc's profitability has rebounded and potentially surpassed its previous levels, reflecting the company's ability to generate more profit from its sales revenue in the most recent year.