Simulations Plus Inc (SLP)

Operating 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
Operating income (ttm)	US$ in thousands	9,215	8,807	8,725	9,703	10,552	11,998	14,911	14,391	13,987	11,993	11,253	13,282	12,597	11,937	11,604	11,350	11,375	11,279	10,648	10,598
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
Operating profit margin		14.25%	14.18%	14.64%	17.43%	19.39%	22.45%	27.66%	27.67%	28.07%	24.89%	24.22%	28.77%	27.57%	27.83%	27.90%	28.32%	30.16%	31.47%	31.34%	32.48%

February 29, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $9,215K ÷ $64,668K
= 14.25%

Simulations Plus Inc's operating profit margin has exhibited fluctuations over the past several quarters. The operating profit margin was at its lowest point in the most recent quarter at 14.25%, slightly lower than the prior quarter at 14.18%. However, in earlier periods, the company's operating profit margin was relatively higher, reaching a peak of 32.48% in the fourth quarter of 2019.

The downward trend in the operating profit margin observed in recent quarters may indicate potential challenges in managing operating expenses relative to revenue generation. It would be important to further analyze the company's cost structure and revenue streams to understand the factors driving these fluctuations in the operating profit margin.

Overall, monitoring the operating profit margin closely is essential for assessing Simulations Plus Inc's operational efficiency and profitability over time.