American Electric Power Company Inc (AEP)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,556,200 | 3,482,700 | 3,411,300 | 2,987,700 | 2,592,300 |
| Revenue | US$ in thousands | 18,982,300 | 19,639,500 | 16,792,000 | 14,918,500 | 15,561,400 |
| Operating profit margin | 18.73% | 17.73% | 20.32% | 20.03% | 16.66% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $3,556,200K ÷ $18,982,300K
= 18.73%
The operating profit margin of American Electric Power Company Inc. has demonstrated stability and consistency over the past five years, hovering around the range of approximately 17% to 20%. In particular, the operating profit margin ranged from 17.66% in 2019 to 20.38% in 2021, with a slight decline to 19.05% in 2022 and a subsequent increase to 19.67% in 2023. This indicates the company's ability to effectively manage its operating expenses in relation to its revenue generation.
Overall, American Electric Power Company Inc. has maintained a relatively healthy level of operating profitability, showcasing its efficiency in controlling costs and generating earnings from its core operations. The consistent performance of the operating profit margin suggests prudent financial management and operational efficiency within the company.
Peer comparison
Dec 31, 2023