Floor & Decor Holdings Inc (FND)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 256,176 | 321,428 | 396,760 | 338,992 | 214,579 |
| Revenue | US$ in thousands | 4,455,770 | 4,413,880 | 4,264,470 | 3,433,530 | 2,425,790 |
| Operating profit margin | 5.75% | 7.28% | 9.30% | 9.87% | 8.85% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $256,176K ÷ $4,455,770K
= 5.75%
Floor & Decor Holdings Inc has shown a fluctuating trend in its operating profit margin over the years. The margin increased from 8.85% in December 2020 to 9.87% by December 2021, indicating an improvement in profitability. However, in the following years, the operating profit margin declined to 9.30% in December 2022, 7.28% in December 2023, and 5.75% by December 2024.
This downward trend in the operating profit margin suggests that Floor & Decor Holdings Inc may be facing challenges in managing its operating expenses relative to its revenue generation. A declining margin could be an indication of increasing costs or inefficiencies in the company's operations that need to be addressed to sustain profitability in the long term.
It is essential for the company to closely monitor its operating expenses and seek opportunities to improve operational efficiency to maintain and enhance its operating profit margin in order to ensure sustainable financial performance.
Peer comparison
Dec 31, 2024