Simpson Manufacturing Company Inc (SSD)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 475,149 | 459,067 | 367,793 | 252,363 | 181,254 |
| Revenue | US$ in thousands | 2,207,600 | 2,106,880 | 1,564,670 | 1,265,190 | 1,139,370 |
| Operating profit margin | 21.52% | 21.79% | 23.51% | 19.95% | 15.91% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $475,149K ÷ $2,207,600K
= 21.52%
Simpson Manufacturing Co., Inc.'s operating profit margin has shown a fluctuating trend over the past five years, ranging from 15.42% in 2019 to 23.36% in 2021. The company experienced a notable increase in operating profit margin from 2019 to 2021, indicating improved operational efficiency and cost management. However, there was a slight decline in 2022 and a further decrease in 2023.
The operating profit margin of 21.66% in 2023 reflects that for every dollar of sales revenue, the company generated operating income of approximately $0.22, after accounting for operating expenses. Although the margin decreased compared to the previous years, it remains relatively healthy, indicating the company's ability to effectively control costs and generate profits from its core business operations.
Further analysis of the factors contributing to the fluctuations in operating profit margin over the years, such as changes in revenue, operating expenses, and cost structure, would provide a more in-depth understanding of the company's financial performance and operational effectiveness.
Peer comparison
Dec 31, 2023