Masimo Corporation (MASI)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 136,500 | 210,000 | 275,800 | 255,800 | 221,216 |
| Revenue | US$ in thousands | 2,053,900 | 2,073,900 | 1,239,150 | 1,143,740 | 937,837 |
| Operating profit margin | 6.65% | 10.13% | 22.26% | 22.37% | 23.59% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $136,500K ÷ $2,053,900K
= 6.65%
Analyzing Masimo Corporation's operating profit margin over the past five years reveals a declining trend. The operating profit margin decreased from 23.59% in 2019 to 6.65% in 2023. This downward trajectory indicates that the company's ability to generate profits from its core business operations has weakened over the years.
While the operating profit margin was relatively stable around 22% in 2020 and 2021, it experienced a significant drop to 10.13% in 2022 and further decreased to 6.65% in 2023. This declining trend may suggest challenges in controlling operating expenses or generating sufficient revenue to cover those costs.
It is crucial for Masimo Corporation to closely monitor and address the factors contributing to this decreasing trend in operating profit margin to ensure long-term profitability and sustainability. Strategies such as cost-control measures, revenue growth initiatives, and operational efficiency enhancements could help improve the company's operating profit margin in the future.
Peer comparison
Dec 31, 2023