Arch Resources Inc (ARCH)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 548,892 | 1,096,250 | 343,786 | -340,764 | 236,076 |
| Revenue | US$ in thousands | 3,129,900 | 3,689,710 | 2,121,840 | 1,453,160 | 2,275,990 |
| Operating profit margin | 17.54% | 29.71% | 16.20% | -23.45% | 10.37% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $548,892K ÷ $3,129,900K
= 17.54%
Arch Resources Inc's operating profit margin has fluctuated significantly over the past five years. In 2023, the operating profit margin was 17.54%, indicating that the company generated 17.54 cents of operating profit for every dollar of revenue. This represented a decrease from the prior year's margin of 29.71%, which was a relatively strong performance.
Looking further back, the operating profit margin in 2021 was 16.20%, showing a slight improvement from the negative margin of -23.45% in 2020. The significant turnaround from a negative margin to a positive one reflects the company's efforts to enhance its operational efficiency and profitability.
In comparison to 2019, when the operating profit margin was 10.37%, the most recent operating profit margin of 17.54% seems favorable, indicating a steady growth trajectory. However, it is essential for Arch Resources Inc to sustain or improve its operating profit margin in the future to ensure long-term financial health and stability.
Peer comparison
Dec 31, 2023