Stanley Black & Decker Inc (SWK)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -5,200,800 | -156,300 | 1,031,200 | 2,176,000 | 1,994,000 |
| Revenue | US$ in thousands | 15,781,100 | 16,947,400 | 15,281,300 | 12,750,000 | 12,912,900 |
| Operating profit margin | -32.96% | -0.92% | 6.75% | 17.07% | 15.44% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-5,200,800K ÷ $15,781,100K
= -32.96%
The operating profit margin of Stanley Black & Decker Inc has shown a significant fluctuation over the past five years. In 2019 and 2020, the company demonstrated healthy operating profit margins of 15.44% and 17.07% respectively, indicating efficient cost management and strong operational performance. However, there was a sharp decline in 2021, with the operating profit margin dropping to 6.75%. This decrease may suggest increased costs or lower revenue generation compared to the previous years.
The downward trend continued in 2022, where the operating profit margin fell further to -0.92%, indicating that the company may have incurred operating losses during that period. The most recent data for the year ending December 31, 2023, shows a negative operating profit margin of -32.96%, which is a concerning sign as it signals a substantial decline in profitability and possibly inefficient operations.
Overall, the downward trajectory of Stanley Black & Decker Inc's operating profit margin over the past few years raises questions about the company's cost structure, revenue generation, and overall profitability. It may be important for the company to evaluate its operational efficiency, control costs, and potentially explore ways to improve profitability in the future.
Peer comparison
Dec 31, 2023