Advanced Drainage Systems Inc (WMS)
Operating profit margin
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 732,131 | 722,385 | 693,606 | 713,154 | 719,310 | 674,456 | 660,283 | 554,259 | 411,918 | 364,031 | 336,680 | 346,693 | 344,525 | 318,394 | 276,451 | 212,096 | -95,349 | -95,403 | -111,520 | -121,990 |
| Revenue (ttm) | US$ in thousands | 2,884,829 | 2,852,169 | 2,844,969 | 2,948,958 | 3,071,658 | 3,135,190 | 3,194,631 | 3,016,141 | 2,772,332 | 2,532,878 | 2,304,154 | 2,142,145 | 1,978,469 | 1,906,416 | 1,813,956 | 1,765,189 | 1,672,121 | 1,573,571 | 1,498,558 | 1,410,542 |
| Operating profit margin | 25.38% | 25.33% | 24.38% | 24.18% | 23.42% | 21.51% | 20.67% | 18.38% | 14.86% | 14.37% | 14.61% | 16.18% | 17.41% | 16.70% | 15.24% | 12.02% | -5.70% | -6.06% | -7.44% | -8.65% |
March 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $732,131K ÷ $2,884,829K
= 25.38%
The operating profit margin of Advanced Drainage Systems Inc has shown a generally positive trend over the recent quarters. The company's operating profit margin improved from 23.42% in March 2022 to 25.38% in March 2024. This indicates that the company has been able to effectively control its operating expenses in relation to its revenue generation.
Furthermore, the operating profit margin has exhibited volatility over the periods, with fluctuations in profitability levels. Notably, December 2019 and March 2020 reflected negative operating profit margins, indicating operational challenges or extraordinary expenses during those periods.
Overall, the improving trend in the operating profit margin of Advanced Drainage Systems Inc suggests effective cost management and potentially increasing operational efficiency, contributing to a stronger financial performance. Continued monitoring of this metric will be necessary to assess the company's ability to sustain and further enhance its profitability in the future.