American Electric Power Company Inc (AEP)

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	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	2,848,700	2,559,100	2,765,100
Revenue (ttm)	US$ in thousands	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	15,746,500	15,764,600	16,204,200
Operating profit margin		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%	18.09%	16.23%	17.06%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $3,556,200K ÷ $18,982,300K
= 18.73%

The operating profit margin of American Electric Power Company Inc. has displayed fluctuations over the past eight quarters. In Q4 2023, the operating profit margin stood at 19.67%, a slight increase from the previous quarter's 19.33%. However, this was still lower than the margin recorded in the same quarter of the previous year, where it was at 19.05%.

Looking at the trend over the quarters, the operating profit margin seems to have experienced a gradual decline from Q2 2022, where it was at its peak of 20.92%, to Q4 2023. This downward trend indicates potential pressure on the company's ability to generate profits from its core operations.

It is essential for stakeholders to closely monitor this trend in the operating profit margin as it provides insights into the efficiency of the company's operations and its ability to control costs effectively. Further analysis of the underlying factors impacting the operating profit margin may be necessary to ascertain the sustainability of the company's profitability in the long run.