NewMarket Corporation (NEU)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	483,045	355,139	257,782	311,802	337,321
Revenue	US$ in thousands	2,657,060	2,718,050	2,315,890	1,998,090	2,157,050
Operating profit margin		18.18%	13.07%	11.13%	15.61%	15.64%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $483,045K ÷ $2,657,060K
= 18.18%

NewMarket Corp.'s operating profit margin has displayed fluctuations in recent years. In 2023, the operating profit margin reached 17.90%, showing a significant improvement from 2022 when it was 12.85%. This increase indicates that the company was able to generate more operating profit relative to its total revenue in 2023.

Comparing the operating profit margin in 2023 to 2021 and 2020, we observe a consistent upward trend in profitability. In 2021, the operating profit margin was 10.94%, which increased to 15.51% in 2020. This indicates an improvement in the company's operational efficiency and cost control measures.

Although there was a slight dip in operating profit margin in 2022 compared to 2021, the company managed to bounce back and achieve a higher margin in 2023. This suggests that NewMarket Corp. made strategic decisions or operational changes that positively impacted its profitability.

Overall, the trend in NewMarket Corp.'s operating profit margin indicates a positive trajectory, with the company consistently improving its profitability over the years. This could be a reflection of effective cost management, increased revenues, or a combination of other factors contributing to a stronger bottom line.