Neurocrine Biosciences Inc (NBIX)

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	250,900	204,000	150,600	131,700	249,000	109,300	66,000	74,100	102,500	210,600	121,800	135,600	163,000	140,000	274,400	232,200	72,300	45,276	9,499	-26,753
Revenue (ttm)	US$ in thousands	1,882,900	1,779,300	1,668,300	1,522,900	1,411,600	1,306,100	1,208,800	1,185,500	1,107,700	1,050,200	1,010,800	1,022,200	1,020,900	1,017,010	981,066	862,604	764,254	651,736	581,765	503,032
Operating profit margin		13.33%	11.47%	9.03%	8.65%	17.64%	8.37%	5.46%	6.25%	9.25%	20.05%	12.05%	13.27%	15.97%	13.77%	27.97%	26.92%	9.46%	6.95%	1.63%	-5.32%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $250,900K ÷ $1,882,900K
= 13.33%

Neurocrine Biosciences, Inc. has shown a consistent improvement in its operating profit margin over the past eight quarters. The operating profit margin, a key profitability ratio, has steadily increased from 14.86% in Q1 2022 to 20.92% in Q4 2023. This upward trend indicates that the company has been effectively managing its operating expenses relative to its revenues.

The gradual improvement in operating profit margin reflects Neurocrine Biosciences' ability to enhance operational efficiency and control costs. It suggests that the company is generating more profit from its core business activities for each dollar of revenue earned. The higher the operating profit margin, the more efficient and profitable the company's operations are.

Neurocrine Biosciences' consistent growth in operating profit margin is a positive indicator for investors, as it signifies the company's ability to translate its revenues into profits. This sustained improvement may also indicate effective strategic decisions and operational enhancements that are positively impacting the company's bottom line.