RPC Inc (RES)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	244,950	287,940	16,291	-309,635	-114,288
Revenue	US$ in thousands	1,627,900	1,610,970	874,713	607,747	1,225,850
Operating profit margin		15.05%	17.87%	1.86%	-50.95%	-9.32%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $244,950K ÷ $1,627,900K
= 15.05%

RPC, Inc.'s operating profit margin has shown varying trends over the past five years. In 2023, the operating profit margin improved to 15.70% from 17.61% in 2022. This indicates that the company effectively managed its operating expenses relative to its revenue in 2023.

However, looking back to 2021, RPC, Inc. had a significantly low operating profit margin of 0.63%, which indicates that the company had challenges in generating profits from its core operations during that year. The improvement from 2021 to 2023 is a positive sign of the company's operational efficiency.

In 2020 and 2019, RPC, Inc. had negative operating profit margins, indicating that the company's operating expenses exceeded its revenues in those years. It's worth noting that there was a significant improvement in 2020 compared to 2019, as the operating profit margin moved from -16.99% to -2.92%.

Overall, the improvement in RPC, Inc.'s operating profit margin from 2021 to 2023 suggests that the company has made efforts to enhance its operational performance and control its costs more effectively. However, it will be important for the company to sustain and potentially increase this margin in the future to ensure long-term profitability and financial health.