Howmet Aerospace Inc (HWM)
Operating profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,655,000 | 1,536,000 | 1,422,000 | 1,287,000 | 1,203,000 | 1,097,000 | 951,000 | 907,000 | 852,000 | 779,000 | 823,000 | 789,000 | 748,000 | 822,000 | 690,000 | 557,000 | 767,000 | 962,000 | 1,215,000 | 1,060,000 |
| Revenue (ttm) | US$ in thousands | 7,430,000 | 7,270,000 | 7,093,000 | 6,861,000 | 6,640,000 | 6,422,000 | 6,197,000 | 5,942,000 | 5,663,000 | 5,435,000 | 5,285,000 | 5,087,000 | 4,972,000 | 4,925,000 | 4,776,000 | 4,834,000 | 6,834,000 | 8,997,000 | 11,422,000 | 13,860,000 |
| Operating profit margin | 22.27% | 21.13% | 20.05% | 18.76% | 18.12% | 17.08% | 15.35% | 15.26% | 15.05% | 14.33% | 15.57% | 15.51% | 15.04% | 16.69% | 14.45% | 11.52% | 11.22% | 10.69% | 10.64% | 7.65% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,655,000K ÷ $7,430,000K
= 22.27%
The operating profit margin of Howmet Aerospace Inc has shown a consistent upward trend over the period from March 31, 2020, to December 31, 2024. The margin started at 7.65% in March 2020 and has steadily increased to 22.27% by December 31, 2024.
There has been a gradual improvement in operating efficiency and cost management within the company as reflected by the increasing operating profit margin figures. This indicates that Howmet Aerospace has been able to control its operating expenses relative to its revenue over time.
The significant increase in operating profit margin from 2022 onwards, reaching a high of 22.27% in December 2024, suggests that the company has implemented effective strategies to enhance operational performance and profitability. This improvement is a positive signal for investors as it shows a strengthening financial position and sustainable growth prospects for Howmet Aerospace.
Overall, the rising trend in the operating profit margin of Howmet Aerospace Inc demonstrates the company's ability to generate more profit from its core business operations, which can lead to enhanced shareholder value and financial stability.
Peer comparison
Dec 31, 2024