Stepan Company (SCL)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 58,613 | 207,336 | 170,781 | 171,522 | 127,260 |
| Revenue | US$ in thousands | 2,306,120 | 2,759,510 | 2,339,460 | 1,863,540 | 1,847,220 |
| Operating profit margin | 2.54% | 7.51% | 7.30% | 9.20% | 6.89% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $58,613K ÷ $2,306,120K
= 2.54%
The operating profit margin of Stepan Co. has shown a downward trend over the past five years. From 2019 to 2023, the operating profit margin decreased from 7.81% to 3.31%. This declining trend indicates a decrease in the company's ability to generate profits from its core business operations relative to its sales. Factors contributing to this decline could include increased costs, pricing pressures, or inefficiencies in operations. It is important for Stepan Co. to closely monitor and address the reasons behind this decreasing trend in order to improve profitability and maintain financial health in the future.
Peer comparison
Dec 31, 2023