Alcoa Corp (AA)
Operating profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -152,000 | -331,000 | -224,000 | 442,000 | 1,312,000 | 4,216,000 | 4,791,000 | 4,639,000 | 4,145,000 | 4,085,000 | 3,637,000 | 3,141,000 | 2,682,000 | 2,726,000 | 2,767,000 | 5,205,000 | 7,102,000 | 7,734,000 | 10,413,000 | 10,863,000 |
| Revenue (ttm) | US$ in thousands | 10,494,000 | 10,518,000 | 10,798,000 | 11,717,000 | 12,326,000 | 12,863,000 | 13,111,000 | 12,351,000 | 11,954,000 | 11,167,000 | 10,433,000 | 9,693,000 | 9,175,000 | 9,219,000 | 9,428,000 | 9,990,000 | 10,327,000 | 11,235,000 | 12,076,000 | 12,977,000 |
| Operating profit margin | -1.45% | -3.15% | -2.07% | 3.77% | 10.64% | 32.78% | 36.54% | 37.56% | 34.67% | 36.58% | 34.86% | 32.40% | 29.23% | 29.57% | 29.35% | 52.10% | 68.77% | 68.84% | 86.23% | 83.71% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-152,000K ÷ $10,494,000K
= -1.45%
The operating profit margin for Alcoa Corp has displayed a declining trend over the past few quarters. In Q4 2023, the operating profit margin was -3.67%, indicating that the company incurred operating losses during that period. This marked a worsening from the previous quarter's operating profit margin of -3.31%.
The downward trend in operating profit margin can also be observed when comparing the performance to the same period in the previous year. In Q4 2022, Alcoa Corp had a significantly higher operating profit margin of 10.91%, showcasing a substantial deterioration in profitability over the year.
It is noteworthy that the company's operating profit margin had shown a positive trend in the earlier quarters of 2022, with margins above 20%. However, this trend reversed throughout 2023, leading to negative margins in the most recent quarters.
The declining operating profit margins may raise concerns about the company's operational efficiency and cost management. Further analysis and investigation into the factors impacting profitability would be necessary to understand the reasons behind this negative trend and to develop strategies for improvement.
Peer comparison
Dec 31, 2023