American Electric Power Co Inc (AEP)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	4,243,100	4,500,800	4,024,000	3,556,200	3,492,900	3,069,700	3,199,400	3,482,700	3,606,300	3,783,600	3,589,100	3,411,300	3,297,800	3,133,600	3,046,400	2,987,700	2,712,200	2,727,200	2,555,500	2,592,300
Revenue (ttm)	US$ in thousands	19,719,300	20,364,700	19,317,100	18,982,300	19,286,200	19,470,600	19,737,800	19,639,500	18,819,800	17,916,700	17,103,500	16,792,000	16,341,200	15,784,600	15,452,100	14,918,500	14,923,900	15,172,500	15,252,100	15,561,400
Operating profit margin		21.52%	22.10%	20.83%	18.73%	18.11%	15.77%	16.21%	17.73%	19.16%	21.12%	20.98%	20.32%	20.18%	19.85%	19.72%	20.03%	18.17%	17.97%	16.76%	16.66%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $4,243,100K ÷ $19,719,300K
= 21.52%

American Electric Power Co Inc's operating profit margin has shown a fluctuating trend over the analyzed periods. Starting at 16.66% on December 31, 2019, the margin increased gradually until reaching a peak of 22.10% on September 30, 2024, indicating improved operational efficiency and profitability. However, the margin slightly decreased to 21.52% on December 31, 2024.

Overall, the company has demonstrated a positive trend in its operating profit margin, with some fluctuations along the way. A higher operating profit margin suggests that the company is effectively managing its costs and generating more profit from its core business activities. It is essential to assess the sustainability of this increase and monitor future financial performance to understand the long-term profitability prospects of the company.