Waters Corporation (WAT)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	826,353	817,676	873,395	821,707	645,489
Revenue	US$ in thousands	2,922,900	2,842,300	2,892,160	2,735,940	2,309,300
Operating profit margin		28.27%	28.77%	30.20%	30.03%	27.95%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $826,353K ÷ $2,922,900K
= 28.27%

Waters Corporation's operating profit margin has shown a generally positive trend over the five-year period from 2020 to 2024. The company's operating profit margin increased from 27.95% in 2020 to 30.03% in 2021, and further improved to 30.20% in 2022, indicating stronger operational efficiency and profitability.

However, in 2023, there was a slight decline in the operating profit margin to 28.77%, which could be attributed to various factors such as increased operating expenses or changes in revenue streams. Interestingly, the operating profit margin remained relatively stable in 2024, at 28.27%, suggesting that Waters Corporation is managing its operating costs effectively despite any potential challenges in the business environment.

Overall, the company's operating profit margin performance indicates a strong operational foundation and management's ability to generate profits from its core business activities. It is crucial for Waters Corporation to continue monitoring and optimizing its operational efficiency to sustain or improve its profitability in the future.