Smith AO Corporation (AOS)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 809,600 | 362,000 | 682,000 | 503,200 | 529,100 |
| Revenue | US$ in thousands | 3,840,800 | 3,744,500 | 3,534,600 | 2,888,000 | 2,981,700 |
| Operating profit margin | 21.08% | 9.67% | 19.29% | 17.42% | 17.74% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $809,600K ÷ $3,840,800K
= 21.08%
The operating profit margin of A.O. Smith Corp. has shown a generally positive trend over the past five years. The margin increased from 15.54% in 2019 to 19.66% in 2023, indicating an improvement in the company's ability to generate profits from its core operations. This steady growth suggests that the company has been effectively managing its operational costs and expenses while maximizing revenue. The increase in operating profit margin signifies the company's efficiency in controlling production and operating expenses, ultimately leading to higher profitability. This consistent improvement in operating profit margin reflects positively on A.O. Smith Corp.'s operational performance and financial health.
Peer comparison
Dec 31, 2023