Open Text Common Shares(Otex) Financials: Net Profit Margin Compared To Industry Average, Plus Other Key Ratios

Company Report for OTEX

Report - net profit margin

This chart shows the historical trend of net profit margin for OTEX compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Net Profit Margin

Definition: Net profit margin shows how much profit remains after paying all costs — including operating expenses, interest, and taxes — for every dollar of sales. A higher margin means the business is efficient and keeps more of its sales as bottom-line profit. Falling margins may signal rising costs or pricing pressure.

Interpretation:
• In '2021', OTEX's net profit margin was 9.2%, measuring the overall profitability of the company. Industry average for EDP Services in '2021' stood at -65.4%.
• In '2022', OTEX's net profit margin was 11.4%, measuring the overall profitability of the company. The increase since '2021' reflects strengthening financial performance. Industry average for EDP Services in '2022' stood at -71.8%. Industry average declined by 6.3% from previous year.
• In '2023', OTEX's net profit margin was 3.4%, measuring the overall profitability of the company. The decline from '2022' may indicate some operational or financial challenges. Industry average for EDP Services in '2023' stood at -71.9%. Industry average declined by 0.1% from previous year.
• In '2024', OTEX's net profit margin was 8.1%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for EDP Services in '2024' stood at -39.9%. Industry average increased by 32.0% compared to previous year.
Overall, OTEX's net profit margin has been volatile but generally stable over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

Good Range: Ranges 5%-20% for many industries.