Hexcel Corporation (HXL)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 186,100 215,300 175,200 51,800 14,100
Revenue US$ in thousands 1,903,000 1,758,000 1,541,500 1,286,400 1,460,600
Operating profit margin 9.78% 12.25% 11.37% 4.03% 0.97%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $186,100K ÷ $1,903,000K
= 9.78%

Hexcel Corporation's operating profit margin has shown a positive trend over the past five years, increasing from 0.97% as of December 31, 2020, to 9.78% as of December 31, 2024. This indicates an improvement in the company's ability to generate profits from its core operations. The significant rise in the operating profit margin from 2020 to 2024 suggests that Hexcel has effectively managed its operating expenses and has likely achieved greater operational efficiency in its business activities. However, there was a slight decrease in the operating profit margin from 2023 to 2024, which could be further analyzed to identify any potential causes. Overall, the upward trend in Hexcel's operating profit margin demonstrates the company's strength in generating profits relative to its operating costs.