Mercer International Inc (MERC)
Operating profit margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -188,774 | -85,116 | 27,033 | 249,896 | 392,368 | 475,068 | 480,100 | 417,905 | 346,583 | 232,236 | 132,217 | 90,696 | 63,729 | -17,993 | -12,982 | 14,513 | 84,003 | 241,106 | 285,705 | 285,371 |
| Revenue (ttm) | US$ in thousands | 1,902,412 | 2,022,817 | 2,095,191 | 2,150,228 | 2,225,984 | 2,170,471 | 2,102,894 | 1,921,045 | 1,713,879 | 1,611,455 | 1,462,773 | 1,394,244 | 1,358,964 | 1,291,941 | 1,356,264 | 1,439,936 | 1,568,676 | 1,576,750 | 1,533,582 | 1,482,235 |
| Operating profit margin | -9.92% | -4.21% | 1.29% | 11.62% | 17.63% | 21.89% | 22.83% | 21.75% | 20.22% | 14.41% | 9.04% | 6.51% | 4.69% | -1.39% | -0.96% | 1.01% | 5.36% | 15.29% | 18.63% | 19.25% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-188,774K ÷ $1,902,412K
= -9.92%
Mercer International Inc.'s operating profit margin has exhibited fluctuations over the past eight quarters. The trend shows a decline in the operating profit margin from Q1 2022 to Q4 2023. In Q1 2022, the operating profit margin was notably high at 21.07%, gradually increasing to 22.29% in Q2 2022 before reaching a peak of 21.43% in Q3 2022. However, a significant drop occurred in Q4 2022, with the operating profit margin decreasing to 17.20%.
The declining trend continued into 2023, with the operating profit margin falling below zero in Q4 2023 at -7.78%. This negative trend intensified over the subsequent quarters, with Q3 2023 reporting a decline to -4.04%. Notably, the most recent quarter, Q1 2023, showed a positive turn with an increase to 1.25% in the operating profit margin, suggesting a potential reversal in the declining trend.
Overall, the analysis of Mercer International Inc.'s operating profit margin indicates volatility and a recent downtrend in profitability. It is essential for the company to closely monitor and address the factors contributing to these fluctuations to maintain financial stability and sustainable growth.