PPL Corporation (PPL)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 1,740,000 1,630,000 1,374,000 1,424,000 1,586,000
Revenue US$ in thousands 8,462,000 8,312,000 7,902,000 5,783,000 5,474,000
Operating profit margin 20.56% 19.61% 17.39% 24.62% 28.97%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,740,000K ÷ $8,462,000K
= 20.56%

Analyzing the operating profit margin of PPL Corporation over the years reveals a trend of fluctuation. Starting at 28.97% on December 31, 2020, the margin decreased to 24.62% by December 31, 2021. Subsequently, there was a significant drop to 17.39% by December 31, 2022, indicating potential operational challenges.

However, there was a slight improvement in the operating profit margin to 19.61% by December 31, 2023, followed by a further increase to 20.56% by December 31, 2024. This upward trend in the latter years suggests potential efforts to improve operational efficiency and generate better returns on sales.

Overall, while there have been fluctuations in the operating profit margin of PPL Corporation, the recent trend shows some stabilization and improvement, which may indicate management's successful implementation of strategies to enhance profitability.