Hertz Global Holdings Inc (HTZ)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -148,000 | 1,090,000 | 1,291,000 | -909,000 | 1,773,000 |
| Revenue | US$ in thousands | 9,371,000 | 8,685,000 | 7,336,000 | 5,258,000 | 9,779,000 |
| Operating profit margin | -1.58% | 12.55% | 17.60% | -17.29% | 18.13% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-148,000K ÷ $9,371,000K
= -1.58%
Hertz Global Holdings Inc.'s operating profit margin has shown a declining trend over the past three years. The operating profit margin was 27.74% in 2021, significantly higher than 23.89% in 2022 and further decreased to 8.17% in 2023. This decrease indicates that the company's operating expenses, such as production costs and overhead, have outpaced its operating income, resulting in a lower percentage of revenue turning into profits. The declining operating profit margin may raise concerns about the company's operational efficiency and cost management strategies, prompting further analysis into the factors contributing to this trend.
Peer comparison
Dec 31, 2023