Harley-Davidson Inc (HOG)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 779,084 | 909,278 | 823,439 | 9,679 | 555,608 |
| Revenue | US$ in thousands | 5,836,480 | 5,755,130 | 5,336,310 | 4,054,380 | 5,361,790 |
| Operating profit margin | 13.35% | 15.80% | 15.43% | 0.24% | 10.36% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $779,084K ÷ $5,836,480K
= 13.35%
The operating profit margin of Harley-Davidson, Inc. has fluctuated over the past five years, ranging from 3.45% in 2020 to 15.79% in 2022. In the most recent year, as of December 31, 2023, the operating profit margin decreased to 13.35%. This indicates that for every dollar of revenue generated, the company retained 13.35 cents as operating profit after deducting operating expenses.
The decrease in the operating profit margin from 2022 to 2023 may suggest that Harley-Davidson, Inc. faced challenges in controlling its operating expenses relative to its revenue. It would be important to further investigate the reasons behind this decline and assess the company's operational efficiency and cost management strategies to understand the factors contributing to this change in profitability.
Overall, while the operating profit margin of Harley-Davidson, Inc. has shown some variability in recent years, it is essential for the company to focus on maintaining a healthy margin to ensure sustainable profitability and long-term financial success.
Peer comparison
Dec 31, 2023