Nordson Corporation (NDSN)
Operating profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 672,761 | 702,360 | 615,127 | 349,545 | 483,113 |
| Revenue | US$ in thousands | 2,568,040 | 2,568,450 | 2,336,130 | 2,088,460 | 2,146,130 |
| Operating profit margin | 26.20% | 27.35% | 26.33% | 16.74% | 22.51% |
October 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $672,761K ÷ $2,568,040K
= 26.20%
The operating profit margin is a key financial ratio that measures a company's operating efficiency and profitability. It indicates the percentage of revenue that translates into operating profit after accounting for operating expenses. Nordson Corp.'s operating profit margin has fluctuated over the past five years, as shown in the data provided:
- 2023: 25.59%
- 2022: 27.12%
- 2021: 26.04%
- 2020: 20.60%
- 2019: 22.02%
The trend in Nordson's operating profit margin shows some variability. In 2022, the operating profit margin was at its highest at 27.12%, indicating that the company was able to efficiently control its operating expenses and generate a higher proportion of profit from its revenue. However, in 2020, the operating profit margin dropped to 20.60%, potentially signaling challenges in managing costs or generating sufficient revenue to cover operating expenses.
The variations in the operating profit margin should be examined in conjunction with other financial indicators to assess the underlying factors driving the changes. Factors such as changes in sales volume, pricing strategies, operating expenses, and cost management initiatives can influence the operating profit margin.
Overall, while Nordson's operating profit margin has experienced fluctuations, it is crucial to conduct further analysis to identify the specific drivers behind the changes and to assess the company's overall financial performance and operating efficiency.
Peer comparison
Oct 31, 2023