Graham Holdings Co (GHC)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	215,504	69,393	444,716	273,422	414,961
Revenue	US$ in thousands	4,790,900	4,414,880	3,924,490	3,185,970	2,889,120
Operating profit margin		4.50%	1.57%	11.33%	8.58%	14.36%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $215,504K ÷ $4,790,900K
= 4.50%

The operating profit margin of Graham Holdings Co has seen fluctuations over the years based on the data provided. As of December 31, 2020, the operating profit margin stood at 14.36%, indicating that the company was able to generate a significant amount of profit from its core operations. However, there was a notable decrease in the operating profit margin to 8.58% by December 31, 2021, suggesting a decline in profitability.

Subsequently, the operating profit margin showed some recovery, reaching 11.33% by the end of December 31, 2022. This improvement could indicate that the company took steps to enhance operational efficiency and profitability. However, by December 31, 2023, the operating profit margin significantly dropped to 1.57%, raising concerns about the company's ability to sustain profitability levels.

By the end of December 31, 2024, the operating profit margin recovered slightly to 4.50%, but it still remained below the levels seen in earlier years. Overall, the fluctuating trend in Graham Holdings Co's operating profit margin highlights the company's performance in generating profits from its operational activities, with periods of both strength and weakness observed over the years.