Graham Holdings Co (GHC)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	69,393	83,898	77,375	100,407	144,546
Revenue	US$ in thousands	4,394,680	3,881,520	3,193,800	3,072,330	2,932,100
Operating profit margin		1.58%	2.16%	2.42%	3.27%	4.93%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $69,393K ÷ $4,394,680K
= 1.58%

Graham Holdings Co.'s operating profit margin has shown some fluctuation over the past five years. In 2023, the operating profit margin decreased to 3.82%, down from 5.42% in 2022. This decline may indicate a decrease in efficiency in generating profit from operations compared to the previous year. However, it's worth noting that the operating profit margin in 2023 is still higher than the levels seen in 2021 and 2020, which were 3.46% and 4.52%, respectively. The peak operating profit margin of 5.24% was achieved in 2019.

Overall, the downward trend in the operating profit margin from 2022 to 2023 suggests potential challenges in managing operating expenses or generating revenue. It would be important for Graham Holdings Co. to closely monitor and analyze the factors contributing to this decline to improve operational efficiency and profitability in the future.