Simulations Plus Inc (SLP)

Net profit margin

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Net income	US$ in thousands	9,961	12,483	9,782	9,332	8,583
Revenue	US$ in thousands	59,577	53,906	46,466	41,589	33,970
Net profit margin		16.72%	23.16%	21.05%	22.44%	25.27%

August 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $9,961K ÷ $59,577K
= 16.72%

The net profit margin of Simulations Plus Inc. has exhibited a declining trend over the past five years, decreasing from 25.27% in 2019 to 16.72% in 2023. This may indicate a potential decrease in the company's efficiency in generating profits from its revenue during this period. It is essential for the company to closely analyze the factors contributing to this decline and consider implementing strategies to improve profitability. Additionally, investors and stakeholders should closely monitor the company's future financial performance to assess whether this trend will continue or if there will be a reversal in the net profit margin.