Korn Ferry (KFY)
Operating profit margin
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 329,645 | 308,091 | 243,431 | 224,149 | 208,843 | 218,937 | 315,768 | 370,599 | 436,771 | 496,289 | 480,418 | 470,074 | 417,573 | 356,438 | 300,834 | 155,784 | 91,759 | 58,199 | 71,896 | 176,025 |
| Revenue (ttm) | US$ in thousands | 2,741,182 | 2,741,517 | 2,772,004 | 2,795,505 | 2,833,706 | 2,843,678 | 2,866,950 | 2,863,836 | 2,852,715 | 2,850,826 | 2,758,505 | 2,643,455 | 2,473,846 | 2,266,770 | 2,061,161 | 1,819,946 | 1,711,528 | 1,761,627 | 1,828,015 | 1,977,330 |
| Operating profit margin | 12.03% | 11.24% | 8.78% | 8.02% | 7.37% | 7.70% | 11.01% | 12.94% | 15.31% | 17.41% | 17.42% | 17.78% | 16.88% | 15.72% | 14.60% | 8.56% | 5.36% | 3.30% | 3.93% | 8.90% |
January 31, 2025 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $329,645K ÷ $2,741,182K
= 12.03%
The operating profit margin of Korn Ferry has experienced notable fluctuations over the period from April 2020 through October 2024, reflecting a dynamic shift in its operational efficiency and profitability.
Between April 2020 and October 2020, the operating profit margin declined significantly from 8.90% to a low of 3.30%, coinciding with the initial impact of the COVID-19 pandemic on global business operations. This period marked a substantial contraction in profit margins, likely driven by reduced revenue and increased operational uncertainties.
Subsequently, from January 2021 through April 2022, the margin exhibited a robust recovery, rising from 5.36% to a peak of 17.78%. This upward trend indicates a period of operational improvement, possibly due to strategic adjustments, market recovery, and favorable revenue growth. The highest margins during this period suggest enhanced efficiency and cost management.
From July 2022 onward, the margin stabilized around the 17% level until October 2022, after which it commenced a gradual decline. By January 2023, the margin had decreased to 15.31%, continuing downward to 12.94% in April 2023, and further to 11.01% in July 2023. The decline may reflect increased costs, competitive pressures, or adverse market conditions impacting profitability.
The margin continued its downward trajectory, reaching a low of 7.70% in October 2023. However, there was a modest recovery thereafter, with margins rising to 8.02% in April 2024 and further to 8.78% in July 2024. The most recent data from October 2024 indicates a notable rebound to 11.24%, with a further increase to 12.03% in January 2025, suggesting some stabilization and potential recovery in operational profitability.
Overall, the operating profit margin of Korn Ferry exhibits periods of significant volatility, initially impacted by the pandemic-induced downturn and subsequently driven by a recovery phase with subsequent fluctuations. The recent upward trend indicates ongoing efforts to enhance operating efficiency and manage costs effectively.
Peer comparison
Jan 31, 2025