Simulations Plus Inc (SLP)

Operating profit margin

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Operating income	US$ in thousands	6,131	8,725	14,911	11,253	11,605
Revenue	US$ in thousands	74,774	59,577	53,906	46,466	41,589
Operating profit margin		8.20%	14.64%	27.66%	24.22%	27.90%

August 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $6,131K ÷ $74,774K
= 8.20%

The operating profit margin of Simulations Plus Inc has shown a fluctuating trend over the past five years. In 2020, the operating profit margin was at a relatively high level of 27.90%, but it decreased in the following years. In 2021, it dropped to 24.22%, further declining to 27.66% in 2022. However, in 2023, there was a significant decrease to 14.64%. The most recent data for 2024 indicates a further decline to 8.20%.

The decreasing trend in the operating profit margin over the years may suggest challenges in managing operating expenses relative to revenue generation. It is important for the company to closely monitor and control its operating costs to improve profitability and ensure long-term sustainability.