United Parcel Service Inc (UPS)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 9,141,000 | 13,094,000 | 12,810,000 | 7,684,000 | 7,798,000 |
| Revenue | US$ in thousands | 90,120,000 | 99,706,000 | 96,557,000 | 83,936,000 | 73,435,000 |
| Operating profit margin | 10.14% | 13.13% | 13.27% | 9.15% | 10.62% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $9,141,000K ÷ $90,120,000K
= 10.14%
The operating profit margin of United Parcel Service, Inc. has shown some fluctuations over the past five years. In 2023, the operating profit margin decreased to 10.05% from 13.05% in 2022. This decrease indicates a decline in the company's ability to generate profits from its core operations relative to its revenue.
Comparing the operating profit margin in 2023 to the margins in the preceding years, it is lower than the 13.17% in 2021, but higher than the 9.08% in 2020. This fluctuation suggests some level of volatility in the company's operational efficiency and profitability during this period.
When looking at the trend over the past five years, there is no consistent pattern in the operating profit margin of United Parcel Service, Inc. The company experienced fluctuations in its operating profit margins, which might be influenced by various internal and external factors affecting its operational performance.
A lower operating profit margin could indicate challenges in controlling costs or generating sufficient revenue from its operations. It could also reflect competitive pressures, changes in market conditions, or shifts in the company's business strategy. Further analysis of the company's cost structure, pricing strategies, and overall financial performance would be necessary to gain a deeper understanding of the factors driving these fluctuations in operating profit margin.