Forward Air Corporation (FWRD)

Operating profit margin

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Operating income (ttm)	US$ in thousands	13,230	-49,289	-43,076	-50,280	-17,028	99,213	157,628	213,800	259,134	265,976	256,538	227,349	193,928	159,301	128,050	109,084	80,874	69,852	81,978	89,157
Revenue (ttm)	US$ in thousands	2,565,295	2,474,262	2,179,844	1,937,272	1,695,788	1,581,041	1,723,813	1,820,471	1,933,508	1,973,403	1,952,132	1,861,734	1,767,186	1,662,427	1,552,839	1,465,211	1,326,218	1,306,525	1,337,688	1,367,354
Operating profit margin		0.52%	-1.99%	-1.98%	-2.60%	-1.00%	6.28%	9.14%	11.74%	13.40%	13.48%	13.14%	12.21%	10.97%	9.58%	8.25%	7.44%	6.10%	5.35%	6.13%	6.52%

March 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $13,230K ÷ $2,565,295K
= 0.52%

Forward Air Corporation's operating profit margin has shown fluctuating trends over the period from June 30, 2020, to March 31, 2025. The company's operating profit margin started at 6.52% on June 30, 2020, and generally increased over the subsequent quarters, reaching a peak of 13.48% on December 31, 2022. This indicates an improvement in the company's operational efficiency and profitability.

However, from the first quarter of 2023, the operating profit margin started to decline, dropping to -2.60% on June 30, 2024. This negative trend continued until March 31, 2025, where the operating profit margin slightly recovered to 0.52%. The negative operating profit margins in the latter part of the period suggest challenges or issues impacting the company's profitability.

Overall, Forward Air Corporation needs to closely monitor its operating expenses and revenue generation strategies to sustain and improve its operating profit margin in the face of changing market conditions and operational challenges.