Forward Air Corporation (FWRD)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-1,062,940	88,210	265,976	159,301	73,924
Revenue	US$ in thousands	2,474,260	1,370,740	1,973,400	1,662,430	1,269,570
Operating profit margin		-42.96%	6.44%	13.48%	9.58%	5.82%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $-1,062,940K ÷ $2,474,260K
= -42.96%

The operating profit margin of Forward Air Corporation has shown fluctuations over the past five years. In 2020, the operating profit margin was 5.82%, indicating that the company generated 5.82 cents of operating profit for every dollar of revenue. The margin improved to 9.58% in 2021, suggesting better operational efficiency and profitability.

In 2022, Forward Air Corporation's operating profit margin significantly increased to 13.48%, reflecting a substantial improvement in the company's profitability. However, in 2023, the margin dropped to 6.44%, indicating a decline in operating efficiency or other factors impacting profitability.

Notably, in 2024, the operating profit margin drastically decreased to -42.96%, which implies that the company's operating expenses surpassed its operating income, resulting in a negative margin. Such a large negative operating profit margin warrants thorough investigation into the company's cost structure and operational performance to identify the underlying factors driving this significant decline.

Overall, while Forward Air Corporation has shown varying operating profit margins over the years, the negative margin in 2024 raises concerns about the company's financial health and underscores the importance of closely monitoring and addressing factors affecting profitability.