Simulations Plus Inc (SLP)

Net profit margin

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Net income (ttm)	US$ in thousands	10,516	10,661	9,961	10,388	10,467	10,702	12,483	11,827	11,527	10,329	9,782	11,665	10,814	9,753	9,332	9,203	9,156	9,105	8,583	7,862
Revenue (ttm)	US$ in thousands	64,668	62,113	59,577	55,682	54,407	53,453	53,906	52,013	49,831	48,182	46,466	46,165	45,686	42,889	41,589	40,075	37,714	35,836	33,971	32,633
Net profit margin		16.26%	17.16%	16.72%	18.66%	19.24%	20.02%	23.16%	22.74%	23.13%	21.44%	21.05%	25.27%	23.67%	22.74%	22.44%	22.96%	24.28%	25.41%	25.27%	24.09%

February 29, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $10,516K ÷ $64,668K
= 16.26%

The net profit margin of Simulations Plus Inc has shown some variability over the past several quarters. The margin ranged from a low of 16.26% in February 2024 to a high of 25.41% in May 2019. It generally stayed within the range of 20% to 25% in recent periods, indicating a consistent level of profitability.

The trend appears to be generally positive, with the net profit margin improving from February 2024 to May 2019, then experiencing some fluctuations but remaining relatively stable. This suggests that the company has been able to effectively manage its expenses and generate profits from its operations.

It is essential for the company to continue monitoring and managing its expenses and revenues to maintain a healthy net profit margin, as it is a key indicator of financial performance and efficiency. Overall, the net profit margin analysis indicates that Simulations Plus Inc has been maintaining a reasonable level of profitability relative to its revenue.