Smurfit WestRock plc (SW)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,007,000 | 1,382,860 | 1,439,000 | 1,073,000 | 891,000 |
| Revenue | US$ in thousands | 21,109,000 | 12,460,100 | 12,815,000 | 10,107,000 | 8,530,000 |
| Operating profit margin | 4.77% | 11.10% | 11.23% | 10.62% | 10.45% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,007,000K ÷ $21,109,000K
= 4.77%
Smurfit WestRock plc's operating profit margin has shown fluctuating trends over the past five years. The margin increased from 10.45% in December 2020 to 11.23% in December 2022, indicating improving operational efficiency and profitability. However, in the following year, the margin slightly decreased to 11.10%, which could be the result of factors such as changes in costs or pricing strategies.
Notably, there was a significant decline in the operating profit margin to 4.77% by December 2024. This sharp decrease raises concerns about the company's ability to generate profits from its core operations. It is essential for stakeholders to further investigate the reasons behind this decline, which could include increased operational costs, pricing pressures, or declining sales volumes.
Overall, while Smurfit WestRock plc has shown some periods of improvement in its operating profit margin, the recent sharp decline in margin highlights the importance of closely monitoring and addressing factors that may impact profitability in the future.
Peer comparison
Dec 31, 2024