ArcBest Corp (ARCB)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 172,619 | 394,526 | 280,986 | 98,278 | 63,770 |
| Revenue | US$ in thousands | 4,422,890 | 5,336,500 | 3,996,140 | 2,942,940 | 2,993,880 |
| Operating profit margin | 3.90% | 7.39% | 7.03% | 3.34% | 2.13% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $172,619K ÷ $4,422,890K
= 3.90%
Operating profit margin is a key financial metric that indicates the percentage of revenue that remains after deducting operating expenses. Looking at the historical trend of ArcBest Corp's operating profit margin, we can see fluctuations over the past five years.
In 2023, ArcBest Corp's operating profit margin decreased to 3.90% from 7.50% in 2022. This decline may indicate challenges in managing operating expenses relative to revenue generation during the year.
In 2022 and 2021, the company experienced relatively stable operating profit margins of 7.50% and 7.06% respectively. This suggests that ArcBest Corp was able to effectively control its operating costs and generate consistent profits during these years.
In 2020, the operating profit margin was 3.34%, showing a slight improvement from 2019 when it stood at 2.13%. This increase may indicate better cost management or improvements in revenue generation strategies during the year.
Overall, it is essential for ArcBest Corp to closely monitor its operating profit margin to ensure efficient operations and sustainable profitability. Fluctuations in this financial metric can provide insights into the company's operational efficiency and effectiveness in managing costs relative to revenue.
Peer comparison
Dec 31, 2023