Black Hills Corporation (BKH)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	472,700	455,200	409,429	428,303	406,042
Revenue	US$ in thousands	2,331,300	2,551,800	1,949,100	1,696,940	1,734,900
Operating profit margin		20.28%	17.84%	21.01%	25.24%	23.40%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $472,700K ÷ $2,331,300K
= 20.28%

The operating profit margin for Black Hills Corporation has fluctuated over the past five years. In 2023, the operating profit margin reached 20.28%, showing an improvement from the prior year's figure of 17.84% but slightly lower than the level seen in 2021 at 21.01%. However, there has been a downward trend in operating profit margin since 2020 when it was 25.24%. Comparing the latest margin to 2019, there has been a decrease from 23.40%.

This indicates that Black Hills Corporation's ability to generate profits from its core operations has varied in recent years. The company may need to closely monitor its operational efficiency and cost management to ensure sustainable profitability in the future.