But once these contracts are up and running properly, ICON will be firing on all cylinders and will return to / exceed
its prior operating profit margins... Well, that's the assumption — but there's still a lot of risk involved at this stage, and the future profitability of this business is not totally clear.
Not exact matches
Now let's try a P / S approach: With the
prior volatility and recent ramp - up in revenues, and the variability of
operating profit margins, I think I'm being pretty generous working off the latest revenues of $ 1,666.3 mio and an
operating profit margin of 41.9 % (10 % to be allocated to minorities).
We can obviously treat all
prior research expenditure as a «free option» at this point, and amortize the 2013 expense accordingly (by adding back two thirds of the spend), which reveals an underlying 18.9 % adjusted
operating profit margin.