Quanex Building Products (NX)
Operating profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 110,701 | 111,281 | 81,870 | 55,265 | -26,427 |
| Revenue | US$ in thousands | 1,130,580 | 1,221,500 | 1,072,150 | 851,573 | 893,841 |
| Operating profit margin | 9.79% | 9.11% | 7.64% | 6.49% | -2.96% |
October 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $110,701K ÷ $1,130,580K
= 9.79%
Quanex Building Products Corp's operating profit margin has shown a positive trend over the past five years, indicating an improvement in the company's ability to generate profits from its core operational activities. The operating profit margin increased from 5.43% in 2019 to 9.79% in 2023, showcasing a consistent growth pattern.
The rising trend in operating profit margin signifies that the company has been effectively managing its operating expenses and cost of goods sold in relation to its sales revenue. This is a positive sign of efficiency and effective cost management within the organization.
The improvement in operating profit margin can also indicate potential enhancements in operational efficiency, economies of scale, or successful implementation of cost-saving measures over the years. It suggests that the company may have achieved better pricing, cost control, or improved production processes, leading to higher profitability on its core business operations.
Overall, the steady increase in Quanex Building Products Corp's operating profit margin reflects positive management of operating costs and fruitful operational strategies, ultimately resulting in improved profitability and financial performance.
Peer comparison
Oct 31, 2023