Axalta Coating Systems Ltd (AXTA)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 706,000 | 588,000 | 423,200 | 462,400 | 305,500 |
| Revenue | US$ in thousands | 5,276,000 | 5,184,000 | 4,884,400 | 4,416,200 | 3,737,600 |
| Operating profit margin | 13.38% | 11.34% | 8.66% | 10.47% | 8.17% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $706,000K ÷ $5,276,000K
= 13.38%
The operating profit margin of Axalta Coating Systems Ltd has shown a mixed trend over the past five years. Starting at 8.17% on December 31, 2020, the margin increased to 10.47% by December 31, 2021, indicating an improvement in profitability. However, in the following year, the margin slightly decreased to 8.66% on December 31, 2022.
Subsequently, there was a significant uptick in operating profit margin, reaching 11.34% on December 31, 2023, followed by a notable increase to 13.38% by December 31, 2024. This upward trajectory suggests that Axalta Coating Systems Ltd was able to effectively manage its operating expenses and generate higher profits relative to its revenues in recent years.
Overall, the progressive improvement in the operating profit margin, particularly in the last two years, reflects a positive trend in the company's operational efficiency and financial performance. However, it would be important for the company to sustain this upward momentum in order to enhance shareholder value and ensure long-term profitability.
Peer comparison
Dec 31, 2024