Advanced Drainage Systems Inc (WMS)
Operating profit margin
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 732,131 | 719,310 | 411,918 | 344,525 | -95,349 |
| Revenue | US$ in thousands | 2,881,170 | 3,071,540 | 2,768,550 | 1,976,670 | 1,633,150 |
| Operating profit margin | 25.41% | 23.42% | 14.88% | 17.43% | -5.84% |
March 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $732,131K ÷ $2,881,170K
= 25.41%
The operating profit margin of Advanced Drainage Systems Inc has shown a generally positive trend over the past five years. The margin has been steadily increasing from -5.84% in 2020 to 25.41% in 2024. This indicates that the company has been able to improve its operational efficiency and effectiveness in generating profits from its core business activities. The significant improvement in the operating profit margin reflects a better control over costs and expenses relative to its revenue generation. This trend suggests that Advanced Drainage Systems Inc has been successful in increasing profitability and creating value for its shareholders through improved operational performance.