Quanex Building Products (NX)
Net profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 82,501 | 88,336 | 56,980 | 38,496 | -46,730 |
| Revenue | US$ in thousands | 1,130,580 | 1,221,500 | 1,072,150 | 851,573 | 893,841 |
| Net profit margin | 7.30% | 7.23% | 5.31% | 4.52% | -5.23% |
October 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $82,501K ÷ $1,130,580K
= 7.30%
The net profit margin is a key financial ratio that measures the percentage of each dollar of revenue that translates into profit. It is a crucial indicator of a company's profitability and efficiency in managing its expenses. Analyzing the net profit margin of Quanex Building Products Corp over the past five years provides insight into its ability to generate profit from its operations.
Oct 31, 2019:
The net profit margin was -5.23%, indicating that the company incurred a net loss during this period. A negative net profit margin may suggest inefficient cost management, low sales, or extraordinary expenses that impacted profitability.
Oct 31, 2020:
The net profit margin improved to 4.52%, signaling a return to profitability and likely reflecting cost-cutting measures and operational improvements. This positive change is a favorable sign for the company's financial performance.
Oct 31, 2021:
Quanex Building Products Corp's net profit margin further increased to 5.31%, showing continued progress in generating profits relative to its sales. This suggests that the company's strategy and operations were contributing to improved financial results.
Oct 31, 2022:
The net profit margin remained relatively stable at 7.23%, indicating continued efficiency in managing costs and a consistent ability to convert revenue into profit. This stability suggests that the company has maintained its profitability over the year.
Oct 31, 2023:
The net profit margin increased to 7.30%, revealing a slight improvement in profitability. This upward trend suggests that Quanex Building Products Corp has been effectively managing its expenses and operations to enhance its bottom line.
In conclusion, the trend in Quanex Building Products Corp's net profit margin demonstrates a significant turnaround from a loss in 2019 to consistent and improving profitability in the subsequent years. This suggests effective cost management, improved operational efficiency, and a stronger financial position for the company. However, it is important to consider other financial metrics and external factors to gain a comprehensive understanding of the company's overall performance.
Peer comparison
Oct 31, 2023