NCR Voyix Corporation (VYX)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 37,000 | 136,000 | 474,000 | 221,000 | 611,000 |
| Revenue | US$ in thousands | 3,483,000 | 7,560,000 | 7,156,000 | 6,207,000 | 6,915,000 |
| Operating profit margin | 1.06% | 1.80% | 6.62% | 3.56% | 8.84% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $37,000K ÷ $3,483,000K
= 1.06%
The operating profit margin of NCR Voyix Corporation has shown a declining trend over the past five years. In 2019, the operating profit margin was relatively high at 8.84%, indicating that the company was generating a significant level of operating profit relative to its revenue at that time. However, in the following years, there was a noticeable decrease in the operating profit margin, with figures of 3.56% in 2020, 6.62% in 2021, 1.80% in 2022, and 1.06% in 2023.
This declining trend in the operating profit margin suggests that the company's operating expenses may have been increasing at a faster rate than its revenue growth, leading to reduced profitability on each dollar of sales. It is important for the company to carefully manage its expenses and enhance operational efficiency to improve its operating profit margin in the future. Further analysis of the company's cost structure and revenue generation strategies may be necessary to identify and address the factors contributing to the declining trend in the operating profit margin.