SanDisk Corp (SNDK)
Operating profit margin
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 616,625 | 1,557,930 | 1,562,210 | 696,095 | 1,556,200 |
| Revenue | US$ in thousands | 5,564,870 | 6,627,700 | 6,170,000 | 5,052,510 | 4,826,810 |
| Operating profit margin | 11.08% | 23.51% | 25.32% | 13.78% | 32.24% |
December 31, 2015 calculation
Operating profit margin = Operating income ÷ Revenue
= $616,625K ÷ $5,564,870K
= 11.08%
The operating profit margin of SanDisk Corp has shown fluctuations over the past five years. In December 31, 2011, the operating profit margin was at a relatively high level of 32.24%, indicating that the company was able to generate significant profits from its core operations.
However, there was a notable decrease in the operating profit margin to 13.78% by December 31, 2012, suggesting a decline in the company's efficiency in managing operating expenses relative to its revenue generation.
SanDisk Corp was able to improve its operating profit margin over the next two years, reaching 25.32% by December 31, 2013 and 23.51% by December 31, 2014. These improvements may signify better cost management or increased revenue streams during those periods.
Nonetheless, there was a significant drop in the operating profit margin to 11.08% by December 31, 2015, indicating possible challenges faced by the company in maintaining profitability amidst changing market conditions or operational complexities.
Overall, the analysis of the operating profit margin highlights the importance of closely monitoring the company's operational efficiency and cost structure to ensure sustainable profitability in the long term.
Peer comparison
Dec 31, 2015