Simply Good Foods Co (SMPL)

Operating profit margin

		Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019
Operating income	US$ in thousands	204,949	202,759	173,675	78,224	72,673
Revenue	US$ in thousands	1,242,670	1,168,680	1,005,610	816,641	523,383
Operating profit margin		16.49%	17.35%	17.27%	9.58%	13.89%

August 26, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $204,949K ÷ $1,242,670K
= 16.49%

The operating profit margin of Simply Good Foods Co over the past five years has demonstrated variability, with fluctuations observed from 15.37% in August 2019 to 17.35% in August 2022. The margin experienced a substantial rise to 17.35% in 2022 from 15.37% in 2019, indicating improved operational efficiency and cost management. However, in the subsequent year, there was a slight decline to 17.27% in 2021, before exhibiting a more notable decrease to 13.27% in 2020, possibly due to increased operating expenses or a decrease in sales.

The most recent data for August 2023 shows a further decrease to 16.49%, potentially indicating ongoing challenges or changes in the company's operational performance. It is essential for stakeholders and investors to closely monitor future financial reports and operating strategies to understand the company's ability to generate profits from its core business activities. Overall, the trend in operating profit margin suggests that Simply Good Foods Co has experienced fluctuations in its operational efficiency and cost management over the past five years.