Hexcel Corporation (HXL)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	215,300	175,200	51,800	14,100	425,200
Revenue	US$ in thousands	1,758,000	1,541,500	1,286,400	1,460,600	2,310,200
Operating profit margin		12.25%	11.37%	4.03%	0.97%	18.41%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $215,300K ÷ $1,758,000K
= 12.25%

The operating profit margin of Hexcel Corp. has shown fluctuations over the past five years. In 2019, the company achieved a relatively high operating profit margin of 18.05%, indicating strong operational efficiency and profitability. However, in the subsequent years, the operating profit margin decreased, reaching its lowest point in 2021 at 5.28%.

The significant improvement in the operating profit margin in 2022 and 2023 to 10.35% and 12.03%, respectively, suggests that the company implemented strategies to enhance profitability and streamline operations. These improvements may have been driven by cost-saving initiatives, revenue growth, or operational efficiencies.

Overall, while the operating profit margin of Hexcel Corp. experienced fluctuations over the analyzed period, the recent increase in profitability metrics indicates positive developments in the company's operational performance. It is essential for investors and stakeholders to monitor these trends to assess the company's financial health and sustainability in the long term.