The AES Corporation (AES)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 191,000 | -93,000 | -530,000 | -173,000 | 338,000 |
| Revenue | US$ in thousands | 12,278,000 | 12,668,000 | 12,617,000 | 11,141,000 | 9,660,000 |
| Operating profit margin | 1.56% | -0.73% | -4.20% | -1.55% | 3.50% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $191,000K ÷ $12,278,000K
= 1.56%
The operating profit margin of The AES Corporation has experienced fluctuations over the past five years.
As of December 31, 2020, the operating profit margin was 3.50%, indicating that the company was generating a positive profit margin from its core business operations. However, in the subsequent years, there was a decline in the operating profit margin.
By December 31, 2021, the operating profit margin had turned negative at -1.55%, suggesting that the company's operating expenses were outpacing its operating revenue. This trend continued into 2022 and 2023, with the operating profit margin further decreasing to -4.20% and -0.73% respectively.
Nevertheless, by December 31, 2024, there was a slight improvement in the operating profit margin, reaching 1.56%. This could indicate some operational adjustments or cost management efforts that helped the company increase its profitability from its core activities.
Overall, the fluctuating operating profit margins of The AES Corporation reflect varying levels of efficiency and profitability in its core business operations over the years, suggesting the company may need to focus on improving operational effectiveness and cost controls to maintain consistent profitability in the future.