WESCO International Inc (WCC)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,406,400 | 1,438,100 | 801,873 | 347,038 | 346,217 |
| Revenue | US$ in thousands | 22,385,200 | 21,420,100 | 18,226,400 | 12,326,000 | 8,358,920 |
| Operating profit margin | 6.28% | 6.71% | 4.40% | 2.82% | 4.14% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,406,400K ÷ $22,385,200K
= 6.28%
Wesco International, Inc.'s operating profit margin has shown a fluctuating trend over the past five years. In 2023, the operating profit margin was 6.28%, representing a slight decrease from the previous year's margin of 6.71%. This slight decline could be a cause for concern as it may indicate challenges in managing operating expenses and generating profits from core business operations.
Comparing the current margin to earlier years, it is worth noting that Wesco International, Inc. has displayed improved performance since 2020 when the operating profit margin was 2.82%. The company experienced a significant jump in 2021 to 4.40%, followed by a further increase in 2022 to 6.71%. This upward trend reflects potential improvements in operational efficiency and profitability over the years.
In terms of industry benchmarks and peer comparison, Wesco International, Inc.'s operating profit margin in 2023 of 6.28% falls within a moderate range. It indicates that the company is able to generate profits after accounting for variable costs such as materials and labor, but there may still be room for enhancement in cost management and revenue generation strategies to further bolster profitability.
Overall, while Wesco International, Inc. has shown some positive signs of growth in operating profit margin in recent years, maintaining or further improving this margin will be crucial for the company's long-term financial sustainability and competitiveness in the market.
Peer comparison
Dec 31, 2023