Rollins Inc (ROL)

Operating profit margin

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Operating income US$ in thousands 583,226 493,388 447,636 376,088 317,394
Revenue US$ in thousands 3,069,670 2,693,180 2,423,470 2,161,220 2,015,480
Operating profit margin 19.00% 18.32% 18.47% 17.40% 15.75%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $583,226K ÷ $3,069,670K
= 19.00%

Rollins, Inc.'s operating profit margin has shown a consistent upward trend over the past five years, indicating improving efficiency in generating profits from its core business operations. The operating profit margin increased from 15.75% in 2019 to 19.15% in 2023, reflecting an overall positive trajectory. This indicates that Rollins has been able to effectively control its operating expenses while increasing its operating income.

The steady improvement in the operating profit margin signifies that Rollins has been successful in managing its costs relative to its revenue, resulting in a higher proportion of revenue translating into operating profits. This trend suggests effective cost management strategies, operational efficiencies, or possibly improved pricing strategies.

The consistent increase in operating profit margin reflects positively on Rollins' ability to grow its bottom line through operational performance. It indicates that the company has been able to enhance its profitability over the years, which may be perceived favorably by investors and stakeholders as a sign of sustainable financial health and potential for future growth.


Peer comparison

Dec 31, 2023

Company name
Symbol
Operating profit margin
Rollins Inc
ROL
19.00%
ABM Industries Incorporated
ABM
5.11%
Airbnb Inc
ABNB
15.31%
Frontdoor Inc
FTDR
13.54%