Liquidity Services Inc (LQDT)

Operating profit margin

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Operating income	US$ in thousands	23,404	26,105	47,405	27,168	-3,897
Revenue	US$ in thousands	367,205	317,498	280,423	258,046	207,151
Operating profit margin		6.37%	8.22%	16.90%	10.53%	-1.88%

September 30, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $23,404K ÷ $367,205K
= 6.37%

The operating profit margin of Liquidity Services Inc has fluctuated over the past five fiscal years. In September 2024, the operating profit margin was 6.37%, representing a decrease from the previous year's margin of 8.22%. This downward trend is notable compared to the significant decrease from 2019 to 2020 when the margin was negative at -1.88%.

Furthermore, the operating profit margin in 2024 is significantly lower than the margin in 2022, which was comparatively high at 16.90%. This suggests a decline in operational efficiency or cost management strategies in the most recent fiscal year.

Overall, the decreasing trend in operating profit margins over the past two years indicates potential challenges in maintaining profitability or controlling costs within the company's operations. Further investigation into the company's operational performance and strategies may be warranted to address these fluctuations and sustain or improve profitability in the future.