RPC Inc (RES)

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	92,986	130,067	133,574	183,813	243,335	284,554	354,013	309,948	220,548	151,789	67,593	28,069	16,291	-25,413	-65,139	-101,449	-309,635	-315,864	-376,751	-330,834
Revenue (ttm)	US$ in thousands	1,414,999	1,474,169	1,466,934	1,518,639	1,617,474	1,704,973	1,834,157	1,793,806	1,601,762	1,387,984	1,153,693	966,943	864,929	745,314	636,592	537,135	598,302	685,662	862,314	1,131,530
Operating profit margin		6.57%	8.82%	9.11%	12.10%	15.04%	16.69%	19.30%	17.28%	13.77%	10.94%	5.86%	2.90%	1.88%	-3.41%	-10.23%	-18.89%	-51.75%	-46.07%	-43.69%	-29.24%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $92,986K ÷ $1,414,999K
= 6.57%

Operating profit margin is a key financial ratio that indicates the efficiency of a company in managing its operating expenses in relation to its revenue. A higher operating profit margin implies better cost control and stronger profitability.

Looking at the historical data for RPC Inc, the operating profit margin shows a fluctuating trend over the past few years. The margin started at negative levels in early 2020, indicating the company was struggling with its operating expenses relative to revenue.

However, there has been a significant improvement in the operating profit margin since then. From March 31, 2022, onwards, the company has shown consistent growth in its operating profit margin, reaching a peak of 19.30% by June 30, 2023. This demonstrates an enhanced ability to generate profits from its core operations.

In the most recent periods up to December 31, 2024, the operating profit margin has slightly decreased but remains above 6%, showing continued profitability and efficiency in managing operating costs.

Overall, RPC Inc has made significant progress in improving its operating profit margin over the years, indicating better operational efficiency and potentially stronger financial performance in the future.