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.