Select Medical Holdings (SEM)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 268,315 | 554,874 | 403,283 | 713,774 | 567,657 |
| Revenue | US$ in thousands | 5,187,100 | 6,664,060 | 6,333,540 | 6,204,520 | 5,531,710 |
| Operating profit margin | 5.17% | 8.33% | 6.37% | 11.50% | 10.26% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $268,315K ÷ $5,187,100K
= 5.17%
Select Medical Holdings' operating profit margin has exhibited fluctuations over the past five years, as evidenced by the data provided. The margin increased from 10.26% as of December 31, 2020, to 11.50% by the end of 2021, indicating an improvement in operational efficiency and profitability during that period.
However, there was a decline in the operating profit margin in 2022, dropping to 6.37%, which suggests potential challenges or increased costs impacting the company's profitability. The margin recovered slightly in 2023, rising to 8.33%, but remained below the 2021 level.
By December 31, 2024, the operating profit margin decreased further to 5.17%, indicating a significant decline compared to previous years. This decline may raise concerns about the company's ability to effectively manage costs and generate profits from its operations.
Overall, the fluctuating trend in Select Medical Holdings' operating profit margin underscores the importance of closely monitoring operational performance and cost management strategies to sustain and enhance profitability in the future.
Peer comparison
Dec 31, 2024