Alcoa Corp (AA)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,519,000 | -584,000 | 702,000 | 1,199,000 | 173,000 |
| Revenue | US$ in thousands | 11,895,000 | 10,551,000 | 12,451,000 | 12,152,000 | 9,286,000 |
| Operating profit margin | 12.77% | -5.54% | 5.64% | 9.87% | 1.86% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,519,000K ÷ $11,895,000K
= 12.77%
According to the data provided, Alcoa Corp's operating profit margin has shown significant fluctuations over the past five years. The operating profit margin was 1.86% as of December 31, 2020, which increased to 9.87% by December 31, 2021, indicating an improvement in profitability.
However, there was a decline in the operating profit margin to 5.64% by December 31, 2022. The margin further deteriorated to -5.54% by December 31, 2023, which implies that the company reported an operating loss during that period.
Nevertheless, there was a substantial recovery in the operating profit margin to 12.77% by December 31, 2024, marking a significant improvement in profitability compared to the previous year. It is evident that Alcoa Corp has experienced volatility in its operating performance, and the company should focus on sustainable strategies to enhance its operating efficiency and maintain a positive profit margin in the long term.
Peer comparison
Dec 31, 2024