Masimo Corporation (MASI)
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 | 136,500 | 165,800 | 195,400 | 188,200 | 209,900 | 214,011 | 226,811 | 269,811 | 275,775 | 263,259 | 255,357 | 252,477 | 255,823 | 252,485 | 244,419 | 234,203 | 221,216 | 213,565 | 210,574 | 210,182 |
| Revenue (ttm) | US$ in thousands | 2,047,100 | 2,130,300 | 2,204,300 | 2,322,800 | 2,062,041 | 1,774,419 | 1,519,833 | 1,244,351 | 1,239,153 | 1,206,629 | 1,177,327 | 1,173,162 | 1,143,744 | 1,096,200 | 1,047,099 | 975,798 | 937,837 | 913,459 | 895,031 | 877,000 |
| Operating profit margin | 6.67% | 7.78% | 8.86% | 8.10% | 10.18% | 12.06% | 14.92% | 21.68% | 22.26% | 21.82% | 21.69% | 21.52% | 22.37% | 23.03% | 23.34% | 24.00% | 23.59% | 23.38% | 23.53% | 23.97% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $136,500K ÷ $2,047,100K
= 6.67%
The operating profit margin of Masimo Corporation has shown some fluctuations over the past few quarters. The trend indicates a gradual decrease from 24.00% in March 2020 to 6.67% in December 2023. This downward trend suggests that the company's operating expenses relative to its revenue have been increasing or that its revenues have been decreasing.
Moreover, the operating profit margin peaked at 24.00% in March 2020 and has been on a generally declining trajectory since then, except for a slight increase in the most recent quarter. The company experienced a significant drop in operating profit margin from 21.68% in March 2022 to 6.67% in December 2023, indicating a potential period of financial challenges or changes in the business environment.
Overall, a declining operating profit margin may indicate inefficiencies in cost management, pricing strategies, or a decrease in the company's competitiveness in its industry. Masimo Corporation may need to closely monitor its operating expenses and revenue generation to improve its operating profit margin and ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2023