HF Sinclair Corp (DINO)
Operating profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,202,564 | 3,107,025 | 3,363,325 | 4,325,629 | 4,054,252 |
| Revenue (ttm) | US$ in thousands | 31,780,330 | 32,993,160 | 34,745,460 | 38,104,440 | 38,041,410 |
| Operating profit margin | 6.93% | 9.42% | 9.68% | 11.35% | 10.66% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $2,202,564K ÷ $31,780,330K
= 6.93%
The operating profit margin of HF Sinclair Corp. has shown a fluctuating trend over the past eight quarters, ranging from a low of 3.78% in Q1 2022 to a high of 11.29% in Q1 2023. Generally, the company's operating profit margin has been on an upward trajectory from Q1 2022 to Q1 2023, indicating an improvement in the company's ability to generate profits from its core operations.
The average operating profit margin for the latest four quarters (Q4 2022 to Q3 2023) is approximately 9.04%, which is higher than the average of 7.50% for the previous four quarters (Q4 2021 to Q3 2022). This increase in operating profit margin suggests that HF Sinclair Corp. has been more efficient in managing its operating expenses relative to its sales revenue in the recent quarters.
It is important for the company to maintain a healthy operating profit margin to ensure sustainable profitability and business growth. Management should continue to focus on controlling costs, improving operational efficiency, and maximizing revenues to sustain and potentially further increase the operating profit margin in the future.