Harmonic Inc (HLIT)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	63,136	22,172	45,519	18,809	-11,024
Revenue	US$ in thousands	678,722	607,907	624,957	507,149	378,831
Operating profit margin		9.30%	3.65%	7.28%	3.71%	-2.91%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $63,136K ÷ $678,722K
= 9.30%

Operating profit margin is a key financial ratio that indicates a company's profitability from its core business activities. Looking at the trend for Harmonic Inc from December 31, 2020, to December 31, 2024, we observe fluctuations in the operating profit margin.

In December 2020, the operating profit margin was negative, indicating that the company was facing challenges in generating profits from its operations. However, by December 2021, there was a significant improvement, with the operating profit margin rising to 3.71%.

By December 2022, Harmonic Inc's operating profit margin expanded further to 7.28%, reflecting improved efficiency in managing costs and generating revenue. There was a slight dip in the margin in December 2023 to 3.65%, possibly due to changes in the business environment or internal factors.

The most recent data point, December 2024, shows a notable increase in the operating profit margin to 9.30%, suggesting that the company has been able to enhance its profitability significantly. This improvement may indicate successful efforts in streamlining operations, controlling expenses, or increasing sales.

Overall, the trend in Harmonic Inc's operating profit margin demonstrates both challenges and improvements in profitability over the years, highlighting the importance of consistent monitoring and management of operational efficiency to drive financial performance.