DXC Technology Co (DXC)

Operating profit margin

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020
Operating income (ttm) US$ in thousands 705,000 532,000 684,000 1,063,000 1,111,000 -266,000 -356,000 -684,000 -659,000 1,476,000 1,460,000 1,398,000 1,316,000 277,000 40,000 -154,000 -393,000 -288,000 -54,000 235,000
Revenue (ttm) US$ in thousands 12,871,000 13,088,000 13,262,000 13,457,000 13,667,000 13,872,000 14,039,000 14,169,000 14,430,000 14,847,000 15,370,000 15,831,000 16,265,000 16,642,000 16,841,000 17,368,000 17,729,000 18,159,000 18,892,000 19,189,000
Operating profit margin 5.48% 4.06% 5.16% 7.90% 8.13% -1.92% -2.54% -4.83% -4.57% 9.94% 9.50% 8.83% 8.09% 1.66% 0.24% -0.89% -2.22% -1.59% -0.29% 1.22%

March 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $705,000K ÷ $12,871,000K
= 5.48%

DXC Technology Co's operating profit margin has shown variability over the periods analyzed. From June 30, 2020, to September 30, 2021, the company experienced consecutive negative operating profit margins, indicating challenges in generating profits from its core business operations. However, from December 31, 2021, onwards, there was a notable turnaround, with operating profit margins steadily increasing and reaching a peak of 9.94% on December 31, 2022.

Subsequently, there was a decline in the operating profit margin in the following periods up to December 31, 2023, reflecting potential operational difficulties. The company managed to improve its performance in the following quarters, with operating profit margins rebounding to 5.16% on September 30, 2024, after which it experienced some fluctuation but maintained a positive trend.

Overall, the operating profit margin trend indicates a mix of challenges and improvements in the company's profitability over the analyzed periods, with efforts towards enhancing operational efficiency leading to positive outcomes in certain quarters. It is essential for DXC Technology Co to sustain this positive momentum and address any factors contributing to fluctuations in operating profit margins to ensure long-term profitability and financial stability.