Waters Corporation (WAT)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	817,676	873,395	821,707	645,489	708,457
Revenue	US$ in thousands	2,842,300	2,892,160	2,735,940	2,309,300	2,348,910
Operating profit margin		28.77%	30.20%	30.03%	27.95%	30.16%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $817,676K ÷ $2,842,300K
= 28.77%

The operating profit margin of Waters Corp. has shown some fluctuation over the past five years. In 2023, the operating profit margin decreased to 27.66% from 29.72% in 2022, which was a 2.06 percentage point decline. Despite this decrease, the operating profit margin in 2023 remained relatively high compared to historical performance. Over the five-year period, the company has generally maintained a strong operating profit margin, indicating efficient cost management and profitability in its operations. It is important for Waters Corp. to monitor and assess the drivers behind the fluctuations in its operating profit margin to sustain profitability in the long term.