Operating Profit Margin
since 2005
Calculation
Monsanto Co., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income from operations1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Aug 31, 2017 | 21.94% | = | 100 | × | 3,212) | ÷ | 14,640) |
| Aug 31, 2016 | 17.59% | = | 100 | × | 2,375) | ÷ | 13,502) |
| Aug 31, 2015 | 23.49% | = | 100 | × | 3,523) | ÷ | 15,001) |
| Aug 31, 2014 | 25.70% | = | 100 | × | 4,075) | ÷ | 15,855) |
| Aug 31, 2013 | 24.02% | = | 100 | × | 3,570) | ÷ | 14,861) |
| Aug 31, 2012 | 23.31% | = | 100 | × | 3,148) | ÷ | 13,504) |
| Aug 31, 2011 | 21.16% | = | 100 | × | 2,502) | ÷ | 11,822) |
| Aug 31, 2010 | 15.30% | = | 100 | × | 1,607) | ÷ | 10,502) |
| Aug 31, 2009 | 26.47% | = | 100 | × | 3,103) | ÷ | 11,724) |
| Aug 31, 2008 | 23.94% | = | 100 | × | 2,721) | ÷ | 11,365) |
| Aug 31, 2007 | 16.56% | = | 100 | × | 1,418) | ÷ | 8,563) |
| Aug 31, 2006 | 16.03% | = | 100 | × | 1,177) | ÷ | 7,344) |
| Aug 31, 2005 | 11.79% | = | 100 | × | 742) | ÷ | 6,294) |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
1 US$ in millions
The operational performance from 2005 to 2017 is characterized by substantial growth in both net sales and operating income, although the operating profit margin exhibited significant volatility. While net sales increased from US$ 6,294 million in 2005 to a peak of US$ 15,855 million in 2014, the operating profit margin fluctuated, reflecting varying levels of operational efficiency and cost management over the period.
- Revenue and Operational Income Trends
- Net sales demonstrated a strong upward trajectory for the first decade of the analyzed period, increasing by approximately 152% between 2005 and 2014. Income from operations followed a similar growth path, rising from US$ 742 million in 2005 to a peak of US$ 4,075 million in 2014. A notable contraction occurred between 2015 and 2016, during which net sales fell to US$ 13,502 million and income from operations decreased to US$ 2,375 million, before both metrics saw a recovery in 2017.
- Operating Profit Margin Analysis
- The operating profit margin began at 11.79% in 2005 and climbed to an initial peak of 26.47% in 2009. A sharp contraction was observed in 2010, with the margin falling to 15.30%, followed by a steady recovery to 25.70% by 2014. A second period of decline occurred between 2014 and 2016, with the margin dipping to 17.59%, before recovering to 21.94% in 2017.
- Profitability Volatility and Efficiency
- The divergence between sales growth and profit margins in years such as 2010 and 2016 suggests periods of increased operating expenses or adverse market conditions that outpaced revenue gains. Despite these fluctuations, the operating profit margin remained consistently above the 2005 baseline for the remainder of the period, indicating a general long-term improvement in operational profitability.
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Comparison to Competitors
Monsanto Co., operating profit margin, long-term trends, comparison to competitors
| Monsanto Co. | lululemon athletica inc. | |
|---|---|---|
| Aug 31, 2017 | 21.94% | 17.96% |
| Aug 31, 2016 | 17.59% | 17.91% |
| Aug 31, 2015 | 23.49% | 20.92% |
| Aug 31, 2014 | 25.70% | 24.60% |
| Aug 31, 2013 | 24.02% | 27.47% |
| Aug 31, 2012 | 23.31% | 28.67% |
| Aug 31, 2011 | 21.16% | 25.35% |
| Aug 31, 2010 | 15.30% | 19.11% |
| Aug 31, 2009 | 26.47% | 16.00% |
| Aug 31, 2008 | 23.94% | 18.25% |
| Aug 31, 2007 | 16.56% | — |
| Aug 31, 2006 | 16.03% | — |
| Aug 31, 2005 | 11.79% | — |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).