Sylvamo Corp (SLVM)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Operating income | US$ in thousands | 156,000 | 283,000 | 734,000 |
| Revenue | US$ in thousands | 3,687,000 | 3,559,000 | 3,504,000 |
| Operating profit margin | 4.23% | 7.95% | 20.95% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $156,000K ÷ $3,687,000K
= 4.23%
The operating profit margin of Sylvamo Corp has exhibited fluctuations over the past four years. In 2023, the operating profit margin decreased to 12.07% from 14.77% in 2022, indicating a decline in the company's ability to generate profit from its core business activities. Despite this decrease, the margin in 2023 still remains above the levels seen in 2021 and 2020, which were 13.08% and 6.45%, respectively.
While the operating profit margin has varied, it is important to further investigate the reasons behind the fluctuations. A decreasing trend in the operating profit margin could be attributed to rising operating expenses relative to revenue, pricing pressures, or inefficiencies in production or cost management. Conversely, an increasing trend in the margin may indicate improved cost control, better pricing strategies, or increased operational efficiency.
Overall, analyzing the operating profit margin trends in conjunction with other financial metrics and qualitative factors can provide a more comprehensive understanding of Sylvamo Corp's financial performance and operational effectiveness.
Peer comparison
Dec 31, 2023