Harmonic Inc (HLIT)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	22,172	45,519	18,809	-12,449	13,083
Revenue	US$ in thousands	603,758	619,917	501,650	359,569	385,878
Operating profit margin		3.67%	7.34%	3.75%	-3.46%	3.39%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $22,172K ÷ $603,758K
= 3.67%

The operating profit margin of Harmonic, Inc. has exhibited variability over the past five years. In 2023, the operating profit margin stood at 3.78%, reflecting a decline from the previous year's figure of 7.82%. This decrease indicates a reduction in the percentage of revenue that translates into operating profit. Comparing the operating profit margin to 2021, there was a marginal increase from 3.73% to 3.78%, suggesting a slight improvement in operational efficiency. Notably, in 2020, Harmonic, Inc. experienced a negative operating profit margin of -2.67%, indicating that the company's operating expenses exceeded its operating profit during that period. The positive trend in operating profit margins in 2022 and 2019, at 7.82% and 4.03% respectively, indicates stronger operational performance in those years compared to 2023. Overall, analyzing the operating profit margin trend provides insights into the company's ability to generate profits from its core operations and manage its operating expenses effectively.