Howmet Aerospace Inc (HWM)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,633,000 | 1,203,000 | 919,000 | 748,000 | 626,000 |
| Revenue | US$ in thousands | 7,430,000 | 6,640,000 | 5,663,000 | 4,972,000 | 5,259,000 |
| Operating profit margin | 21.98% | 18.12% | 16.23% | 15.04% | 11.90% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,633,000K ÷ $7,430,000K
= 21.98%
The operating profit margin of Howmet Aerospace Inc has shown a positive trend over the past five years, increasing steadily from 11.90% in December 2020 to 21.98% by December 2024. This indicates an improvement in the company's ability to control operating expenses relative to its revenue.
The consistent growth in the operating profit margin reflects Howmet Aerospace's effective cost management strategies and operational efficiency. The company has been able to generate more profit from each dollar of sales over the years, signaling increased profitability and potential for sustainable financial performance.
The rising trend in the operating profit margin suggests that Howmet Aerospace has been successful in optimizing its operations, enhancing productivity, and potentially gaining a competitive edge in its industry. This positive trajectory bodes well for the company's financial health and demonstrates its ability to generate healthy returns for its stakeholders.
Peer comparison
Dec 31, 2024