PPL Corporation (PPL)
Operating profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,740,000 | 1,753,000 | 1,762,000 | 1,677,000 | 1,630,000 | 1,576,000 | 1,480,000 | 1,418,000 | 1,374,000 | 1,346,000 | 1,436,000 | 1,463,000 | 1,424,000 | 1,494,000 | 1,500,000 | 1,577,000 | 1,586,000 | 1,901,000 | 2,190,000 | 2,483,000 |
| Revenue (ttm) | US$ in thousands | 8,462,000 | 8,282,000 | 8,259,000 | 8,201,000 | 8,312,000 | 8,571,000 | 8,662,000 | 8,535,000 | 7,902,000 | 7,097,000 | 6,475,000 | 6,067,000 | 5,783,000 | 5,669,000 | 5,557,000 | 5,532,000 | 5,474,000 | 6,057,000 | 6,590,000 | 7,130,000 |
| Operating profit margin | 20.56% | 21.17% | 21.33% | 20.45% | 19.61% | 18.39% | 17.09% | 16.61% | 17.39% | 18.97% | 22.18% | 24.11% | 24.62% | 26.35% | 26.99% | 28.51% | 28.97% | 31.39% | 33.23% | 34.82% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,740,000K ÷ $8,462,000K
= 20.56%
The operating profit margin of PPL Corporation has exhibited a declining trend over the analyzed period from March 31, 2020, to December 31, 2024. It started at a relatively high level of 34.82% in March 2020 but gradually decreased to 20.56% by the end of December 2024. This downward trajectory suggests that the company's profitability from its core operations has been diminishing over time.
The decreasing operating profit margin could indicate challenges in managing operating expenses effectively or declining revenues relative to costs. It could also imply increasing competition, pricing pressures, or inefficiencies in the company's operations.
Investors and stakeholders may be concerned about this trend as a declining operating profit margin can impact overall profitability and cash flows. It may also raise questions about the company's ability to generate sustainable earnings from its primary business activities.
Management of PPL Corporation may need to closely evaluate and address the factors driving the declining operating profit margin to improve operational efficiency, streamline costs, or explore revenue-generating opportunities to reverse this negative trend and enhance overall financial performance.
Peer comparison
Dec 31, 2024