Pentair PLC (PNR)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 739,200 | 595,300 | 636,900 | 461,400 | 432,500 |
| Revenue | US$ in thousands | 3,987,100 | 4,061,100 | 3,754,700 | 2,994,800 | 2,957,200 |
| Operating profit margin | 18.54% | 14.66% | 16.96% | 15.41% | 14.63% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $739,200K ÷ $3,987,100K
= 18.54%
The operating profit margin of Pentair plc has shown a generally positive trend over the past five years. The margin increased from 14.63% in 2019 to 18.01% in 2023, indicating an improvement in the company's ability to generate profits from its core operations. This suggests that Pentair has been effectively managing its operating expenses relative to its revenue, leading to a higher proportion of revenue translating into operating profits. The steady increase in the operating profit margin reflects the company's efficiency in cost control, pricing strategies, and overall operational performance. Overall, Pentair plc has demonstrated consistent growth in its operating profitability over the past five years.
Peer comparison
Dec 31, 2023