Callaway Golf Company (MODG)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -1,257,200 | 237,700 | 256,800 | 204,700 | -105,500 |
| Revenue | US$ in thousands | 4,259,500 | 4,100,200 | 3,879,900 | 3,049,960 | 1,551,060 |
| Operating profit margin | -29.52% | 5.80% | 6.62% | 6.71% | -6.80% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-1,257,200K ÷ $4,259,500K
= -29.52%
The operating profit margin of Callaway Golf Company has exhibited considerable variability over the past five years. In 2020, the company reported a negative operating profit margin of -6.80%, indicating that its operating expenses outpaced its operating revenues, leading to a loss at the operating level.
However, the company was able to significantly improve its performance in the subsequent years. By the end of 2021, the operating profit margin increased to 6.71%, reflecting a turnaround in the company's operational efficiency and profitability. This positive trend continued into 2022, where the operating profit margin remained relatively stable at 6.62%.
In 2023, there was a slight decline in the operating profit margin to 5.80%, which suggests that the company may have faced some challenges in managing its operating costs or generating sufficient revenue to sustain profitability.
The most significant deviation occurred in 2024 when the operating profit margin plummeted to -29.52%. This substantial decrease indicates a significant decline in the company's ability to generate profits from its core business operations, possibly due to exceptional expenses or a decline in revenue relative to expenses.
Overall, the analysis of Callaway Golf Company's operating profit margin highlights both improvements and setbacks in the company's operational performance over the past five years, indicating the importance of closely monitoring and managing operational efficiency and profitability metrics.
Peer comparison
Dec 31, 2024