Forward Air Corporation (FWRD)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	88,210	247,591	159,301	73,924	112,416
Revenue	US$ in thousands	1,337,060	1,959,900	1,652,200	1,269,570	1,215,190
Operating profit margin		6.60%	12.63%	9.64%	5.82%	9.25%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $88,210K ÷ $1,337,060K
= 6.60%

The operating profit margin of Forward Air Corporation has shown some fluctuations over the past five years. In 2023, the operating profit margin decreased to 6.60% from 12.63% in 2022, indicating a significant decline in profitability. This decrease may be a concern as it suggests that the company's operating expenses may have increased relative to its revenue.

Comparing the 2023 operating profit margin to the margins of the previous years, it is the lowest since 2020 when it was at 5.82%. Despite the recent decrease, the company's operating profit margin in 2023 is still higher than that of 2020, implying that there has been some improvement in profitability since then.

Over the five-year period, the operating profit margin has varied, reaching a peak of 12.63% in 2022 and a low of 5.82% in 2020. This fluctuation may indicate changes in the company's cost structure, pricing strategies, or operational efficiency.

Overall, monitoring the operating profit margin trend of Forward Air Corporation is crucial to assess its ability to control costs and generate profits from its core operations. Further analysis of the underlying factors contributing to the fluctuations in the operating profit margin is recommended to identify areas for improvement and ensure sustainable profitability in the future.