TKO Group Holdings, Inc. (TKO)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 282,902 | 446,663 | 544,387 | 391,137 | 314,128 |
| Revenue | US$ in thousands | 2,804,340 | 1,674,970 | 1,140,150 | 1,031,940 | 891,154 |
| Operating profit margin | 10.09% | 26.67% | 47.75% | 37.90% | 35.25% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $282,902K ÷ $2,804,340K
= 10.09%
TKO Group Holdings, Inc.'s operating profit margin has shown some fluctuations over the past five years. Starting at 35.25% on December 31, 2020, the margin increased to 37.90% by December 31, 2021, indicating an improvement in the company's ability to generate profits from its core operations. The margin then experienced a significant jump to 47.75% by December 31, 2022, signaling a period of strong profitability for the company.
However, there was a notable decrease in the operating profit margin to 26.67% by December 31, 2023, which may suggest challenges or changes in the company's cost structure or revenue dynamics during that year. The margin further dropped to 10.09% by December 31, 2024, reflecting a significant decline in profitability and potential issues impacting the company's operational efficiency.
Overall, while TKO Group Holdings, Inc. has demonstrated periods of healthy operating profit margins, the recent downward trend raises questions about the company's ability to maintain consistent profitability. It would be important for stakeholders to further analyze the factors contributing to these fluctuations and assess the company's strategies to address any underlying issues affecting its operating profit margin.
Peer comparison
Dec 31, 2024