The AES Corporation (AES)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -93,000 | -530,000 | -173,000 | 338,000 | 671,000 |
| Revenue | US$ in thousands | 12,668,000 | 12,617,000 | 11,141,000 | 9,660,000 | 10,189,000 |
| Operating profit margin | -0.73% | -4.20% | -1.55% | 3.50% | 6.59% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-93,000K ÷ $12,668,000K
= -0.73%
AES Corp.'s operating profit margin has shown a general declining trend over the past five years. Starting at 21.13% in 2019, the margin peaked at 26.17% in 2020 before decreasing to 22.84% in 2021, 18.55% in 2022, and finally 17.75% in 2023. This downward trend indicates that the company may be experiencing challenges in managing its operating expenses or facing pressure on its pricing strategies. Further analysis of the components of operating expenses and revenue sources would provide more insights into the factors contributing to this declining trend in operating profit margin.