Fortrea Holdings Inc. (FTRE)
Operating profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -161,900 | -117,000 | -88,700 | -6,200 |
| Revenue (ttm) | US$ in thousands | 2,646,300 | 2,690,400 | 2,756,600 | 2,905,600 |
| Operating profit margin | -6.12% | -4.35% | -3.22% | -0.21% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-161,900K ÷ $2,646,300K
= -6.12%
To analyze Fortrea Holdings Inc.'s operating profit margin, we consider the following figures:
- March 31, 2024: -0.21%
- June 30, 2024: -3.22%
- September 30, 2024: -4.35%
- December 31, 2024: -6.12%
The operating profit margin indicates the efficiency of a company's core operations in generating profit. A negative operating profit margin implies that the company's operating expenses exceed its gross profit, resulting in an overall loss from operations.
Over the four quarters provided, Fortrea Holdings Inc. experienced a declining trend in its operating profit margin. The company's margins were negative in all periods, with a gradual deterioration throughout the year. This suggests that Fortrea faced challenges in managing its operating expenses relative to its revenue generation.
The consistent negative operating profit margins signify potential issues with cost management, pricing strategies, or operational inefficiencies within the company. Investors and stakeholders may see this trend as a red flag, highlighting the need for Fortrea to address its cost structure and operational effectiveness to improve profitability and ensure sustainable growth in the future.
Peer comparison
Dec 31, 2024