Columbia Sportswear Company (COLM)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 310,284 | 393,104 | 450,504 | 137,049 | 394,971 |
| Revenue | US$ in thousands | 3,508,870 | 3,486,170 | 3,144,770 | 2,501,550 | 3,042,480 |
| Operating profit margin | 8.84% | 11.28% | 14.33% | 5.48% | 12.98% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $310,284K ÷ $3,508,870K
= 8.84%
The operating profit margin of Columbia Sportswear Co. has exhibited fluctuations over the past five years. In 2023, the operating profit margin decreased to 8.99% from 11.74% in 2022, reflecting a decline in the company's ability to generate profits from its core operations. This decrease may be attributed to various factors such as changes in expenses, pricing strategies, or sales performance.
Comparing the recent operating profit margin to previous years, it is evident that the margin in 2023 is lower than the peaks seen in 2021 and 2019, where it reached 13.82% and 12.47%, respectively. The decrease in profitability in 2023 may raise concerns among stakeholders regarding the company's operational efficiency and profitability sustainability.
It is crucial for Columbia Sportswear Co. to closely monitor its operating expenses, revenue generation strategies, and cost management practices to improve its operating profit margin and enhance overall financial performance. Additionally, a deeper analysis of the underlying reasons behind the decline in the operating profit margin in 2023 would provide valuable insights for strategic decision-making and performance improvement moving forward.
Peer comparison
Dec 31, 2023