National HealthCare Corporation (NHC)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 57,134 | 31,896 | 50,925 | 48,155 | 49,038 |
| Revenue | US$ in thousands | 1,141,540 | 1,085,740 | 1,074,300 | 1,028,220 | 996,383 |
| Operating profit margin | 5.00% | 2.94% | 4.74% | 4.68% | 4.92% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $57,134K ÷ $1,141,540K
= 5.00%
The operating profit margin of National Healthcare Corp. has exhibited fluctuations over the past five years. In 2023, the operating profit margin improved significantly to 4.51%, marking a notable increase compared to the preceding year. This suggests that in 2023, the company was able to generate a higher proportion of operating profit relative to its total revenue, indicating efficiency in managing production and operational costs.
In 2022, the operating profit margin stood at 1.61%, representing a moderate increase from the prior year. Although the margin improved, it remained relatively low, indicating that the company may have faced challenges in controlling operating expenses or maximizing revenue generation.
In 2021 and 2020, National Healthcare Corp. reported negative operating profit margins of -0.33% and -0.08% respectively, implying that the company incurred operating losses during these years. A negative operating profit margin suggests that the company's operating expenses exceeded its operating income, highlighting potential operational inefficiencies or unfavorable market conditions.
The highest operating profit margin was recorded in 2019 at 5.24%, indicating strong operational performance and profitability that year. This suggests that in 2019, National Healthcare Corp. was able to effectively manage its operational costs and maximize revenue generation, resulting in a higher proportion of operating profit relative to total revenue.
Overall, the analysis of National Healthcare Corp.'s operating profit margin reveals fluctuations in profitability over the past five years, with 2023 showing a significant improvement, while 2021 and 2020 faced challenges with negative margins. Monitoring and analyzing the operating profit margin can provide insights into the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023