Simpson Manufacturing Company Inc (SSD)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 353,987 | 333,995 | 266,447 | 187,000 | 133,982 |
| Revenue | US$ in thousands | 2,207,600 | 2,106,880 | 1,564,670 | 1,265,190 | 1,139,370 |
| Net profit margin | 16.03% | 15.85% | 17.03% | 14.78% | 11.76% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $353,987K ÷ $2,207,600K
= 16.03%
The net profit margin of Simpson Manufacturing Co., Inc. has shown fluctuations over the past five years, ranging from 11.79% in 2019 to 16.94% in 2021. The company's ability to generate profit relative to its revenue has generally improved over this period, with a consistent upward trend from 2019 to 2021. In 2023, the net profit margin stood at 15.99%, slightly lower than the previous year but still demonstrating healthy profitability.
The increasing trend in net profit margin indicates that Simpson Manufacturing Co., Inc. has been effectively managing its costs and expenses in relation to its revenue, resulting in a stronger bottom-line performance. This trend suggests that the company has been successful in optimizing its operations and maintaining profitability even in challenging economic environments.
However, the slight dip in net profit margin in 2023 compared to 2022 could be a point of concern, signaling a potential need for the company to focus on cost control measures or revenue enhancement strategies to sustain or improve its profitability levels in the future.
Overall, Simpson Manufacturing Co., Inc.'s net profit margin performance reflects a generally positive trend over the past five years, indicating efficient operational management and profitability within the industry. Going forward, monitoring and analyzing this ratio will be crucial in evaluating the company's financial health and performance.
Peer comparison
Dec 31, 2023