Pilgrims Pride Corp (PPC)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 522,286 | 1,176,600 | 211,164 | 245,463 | 690,568 |
| Revenue | US$ in thousands | 17,112,600 | 17,295,900 | 14,639,400 | 11,996,600 | 11,295,500 |
| Operating profit margin | 3.05% | 6.80% | 1.44% | 2.05% | 6.11% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $522,286K ÷ $17,112,600K
= 3.05%
Operating profit margin is a key financial ratio that measures a company's efficiency in generating profits from its core operations. In the case of Pilgrim's Pride Corp., the operating profit margin has fluctuated over the past five years.
In 2023, the operating profit margin was 3.26%, indicating that the company earned $0.0326 in operating profit for every dollar of sales. This represents a decline from the previous year's margin of 6.91%, suggesting a decrease in operational efficiency or increased costs relative to revenue.
The 2022 margin of 6.91% was the highest among the years analyzed, demonstrating strong profitability from operations. In contrast, the operating profit margins in 2021 and 2020 were 1.47% and 2.03%, respectively, indicating lower profitability levels during those periods.
The highest operating profit margin in the given period was in 2019 at 6.05%, reflecting a more profitable operating performance compared to the subsequent years. Overall, the fluctuation in Pilgrim's Pride Corp.'s operating profit margin over the years suggests varying levels of operational efficiency and profitability challenges within the company's core business activities.
Peer comparison
Dec 31, 2023