NewMarket Corporation (NEU)

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	483,045	491,239	437,541	396,890	355,139	281,037	265,415	252,571	257,782	297,908	333,607	290,617	311,802	303,803	293,217	364,135	337,321	345,585	325,515	293,971
Revenue (ttm)	US$ in thousands	2,657,060	2,693,036	2,722,787	2,764,467	2,718,052	2,610,742	2,535,924	2,401,221	2,315,892	2,282,767	2,176,308	1,998,315	1,990,356	1,997,020	2,039,447	2,191,264	2,167,555	2,171,422	2,177,951	2,215,662
Operating profit margin		18.18%	18.24%	16.07%	14.36%	13.07%	10.76%	10.47%	10.52%	11.13%	13.05%	15.33%	14.54%	15.67%	15.21%	14.38%	16.62%	15.56%	15.92%	14.95%	13.27%

December 31, 2023 calculation

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

The operating profit margin of NewMarket Corp. has shown a positive trend over the past eight quarters, reflecting improvements in the company's profitability. The margins have steadily increased from 10.30% in Q1 2022 to 17.90% in Q4 2023. This indicates that the company has been effectively managing its operating expenses and generating higher operating profits as a percentage of revenue. The consistent growth in operating profit margin suggests that NewMarket Corp. has been successful in enhancing operational efficiency and optimizing its cost structure. Overall, the increasing trend in operating profit margin highlights the company's ability to generate more profit from each dollar of revenue, which is a positive indicator of its financial performance and sustainability.