Option Care Health Inc (OPCH)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	321,833	319,352	315,308	317,000	314,595	298,231	277,902	254,611	240,231	232,811	224,976	213,992	190,841	174,412	156,085	131,201	110,755	80,385	34,104	20,660
Revenue (ttm)	US$ in thousands	4,998,210	4,776,180	4,590,640	4,432,520	4,302,320	4,205,140	4,133,050	4,044,800	3,944,734	3,844,718	3,715,735	3,595,187	3,438,640	3,316,159	3,205,831	3,086,407	3,032,610	2,948,676	2,782,947	2,233,616
Operating profit margin		6.44%	6.69%	6.87%	7.15%	7.31%	7.09%	6.72%	6.29%	6.09%	6.06%	6.05%	5.95%	5.55%	5.26%	4.87%	4.25%	3.65%	2.73%	1.23%	0.92%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $321,833K ÷ $4,998,210K
= 6.44%

Option Care Health Inc has shown a consistent improvement in its operating profit margin over the years, indicating an efficient management of its operations. The operating profit margin has increased steadily from 0.92% as of March 31, 2020, to 6.44% as of December 31, 2024. This signifies that the company has been able to generate more operating income for every dollar of sales over time.

The trend in the operating profit margin demonstrates that Option Care Health Inc has been able to control its operating expenses effectively while increasing its operating income. This could be attributed to factors such as cost efficiencies, pricing strategies, and revenue growth.

However, there was a slight dip in the operating profit margin from March 31, 2024, to June 30, 2024, before rebounding in the subsequent periods. It is important for the company to closely monitor its operating expenses and revenue-generating activities to ensure the sustainability of its operating profit margin growth in the future.