Simulations Plus Inc (SLP)

Operating profit margin

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Operating income	US$ in thousands	8,725	14,911	11,253	11,605	10,648
Revenue	US$ in thousands	59,577	53,906	46,466	41,589	33,970
Operating profit margin		14.64%	27.66%	24.22%	27.90%	31.35%

August 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $8,725K ÷ $59,577K
= 14.64%

The operating profit margin of Simulations Plus Inc. has shown a declining trend over the past five years, decreasing from 31.35% in 2019 to 14.64% in 2023. This indicates that the company's ability to generate profits from its core business operations has been diminishing. A declining operating profit margin may raise concerns about cost management, pricing strategies, or overall operational efficiency. It is important for the company to address these issues in order to improve its profitability and long-term sustainability.