Southwest Gas Holdings Inc (SWX)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 418,330 | -24,398 | 369,547 | 423,004 | 371,811 |
| Revenue | US$ in thousands | 5,433,970 | 4,960,010 | 3,680,450 | 3,298,870 | 3,119,920 |
| Operating profit margin | 7.70% | -0.49% | 10.04% | 12.82% | 11.92% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $418,330K ÷ $5,433,970K
= 7.70%
From the data provided, Southwest Gas Holdings Inc's operating profit margin has shown some fluctuations over the past five years. The operating profit margin, which indicates the company's efficiency in generating profit from its core operations, decreased from 11.92% in 2019 to 9.01% in 2023. This decline may indicate potential challenges in managing operating expenses or changes in revenue generation during this period.
The year 2020 saw a significant drop in the operating profit margin to 12.82%, which was the highest among the years presented. This could suggest that Southwest Gas Holdings Inc effectively managed its operating expenses relative to its revenue that year.
In 2021 and 2022, the operating profit margin decreased to 10.04% and 8.69%, respectively, which might signal increased operating costs or a decrease in revenue efficiency during those years.
Overall, Southwest Gas Holdings Inc's operating profit margin has experienced fluctuations, indicating varying levels of efficiency in generating profits from its core business operations over the past five years. Further analysis of the company's expenses, revenue streams, and industry trends may provide additional insights into the factors driving these changes in operating profit margin.
Peer comparison
Dec 31, 2023