Alcoa Corp (AA)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -152,000 | 1,306,000 | 4,206,000 | 801,000 | -1,892,000 |
| Revenue | US$ in thousands | 10,494,000 | 12,326,000 | 11,911,000 | 9,120,000 | 10,296,000 |
| Operating profit margin | -1.45% | 10.60% | 35.31% | 8.78% | -18.38% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-152,000K ÷ $10,494,000K
= -1.45%
The operating profit margin of Alcoa Corp has fluctuated over the past five years. In 2023, the company reported a negative operating profit margin of -3.67%, indicating that the company's operating expenses exceeded its operating income. This represents a significant decline from the previous year, where the operating profit margin was 10.91%.
In 2021, Alcoa Corp achieved a relatively strong operating profit margin of 17.09%, reflecting the company's ability to efficiently manage its operating expenses and generate profit from its core business operations. This marked a notable improvement from the prior year's margin of 4.15%.
In 2020, the operating profit margin decreased to 4.15%, which suggests that the company faced challenges in controlling its operating costs and maximizing profitability compared to the previous year. However, in 2019, Alcoa Corp had a higher operating profit margin of 7.93%, indicating a moderate decline compared to the peak in 2021.
Overall, Alcoa Corp's operating profit margin has shown variability over the years, demonstrating the company's sensitivity to changes in operating efficiency, cost management, and overall economic conditions. This trend highlights the importance of closely monitoring and analyzing key financial indicators to assess a company's operational performance and profitability.
Peer comparison
Dec 31, 2023