Element Solutions Inc (ESI)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 343,900 | 173,600 | 325,300 | 299,900 | 181,000 |
| Revenue | US$ in thousands | 2,456,900 | 2,333,200 | 2,549,400 | 2,399,800 | 1,853,700 |
| Operating profit margin | 14.00% | 7.44% | 12.76% | 12.50% | 9.76% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $343,900K ÷ $2,456,900K
= 14.00%
The operating profit margin of Element Solutions Inc. has exhibited variability over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the operating profit margin was approximately 9.76%, indicating the proportion of revenue remaining after covering operating expenses. This figure increased significantly in 2021 to 12.50%, reflecting improved operational efficiency or increased pricing power. The margin saw a marginal further improvement in 2022, reaching 12.76%, suggesting stability in profit generation relative to revenues during that period.
However, a notable decline occurred in 2023, with the operating profit margin falling sharply to 7.44%. This decrease could be indicative of increased operating costs, reduced pricing margins, or other operational challenges faced during that year. In response, the margin rebounded considerably in 2024 to 14.00%, surpassing previous levels and indicating a potentially improved cost structure, operational efficiencies, or favorable market conditions that enhanced profitability relative to sales.
Overall, the trend demonstrates fluctuations with a significant dip in 2023, followed by a robust recovery in 2024. This volatility underscores the importance of analyzing underlying operational factors and market conditions impacting Element Solutions Inc.'s profitability over these years.
Peer comparison
Dec 31, 2024