Whirlpool Corporation (WHR)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 143,000 | 1,015,000 | -1,056,000 | 2,348,000 | 1,615,000 |
| Revenue | US$ in thousands | 16,343,000 | 18,998,000 | 17,719,000 | 21,915,000 | 19,274,000 |
| Operating profit margin | 0.87% | 5.34% | -5.96% | 10.71% | 8.38% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $143,000K ÷ $16,343,000K
= 0.87%
The operating profit margin of Whirlpool Corporation has fluctuated over the past five years. In 2020, the company's operating profit margin stood at 8.38%, indicating that for every dollar of sales, the company generated a profit of $0.0838 before taxes and other expenses.
By 2021, the operating profit margin improved to 10.71%, reflecting a more efficient cost structure or increased sales prices relative to costs. This suggests that Whirlpool was able to generate higher profits from its operations during that year.
However, in 2022, the operating profit margin took a significant downturn, falling to -5.96%. A negative operating profit margin indicates that the company's operating expenses exceeded its gross profit, resulting in an operating loss for the year. This could be a result of increased expenses or a decrease in sales prices.
In 2023, the operating profit margin recovered to 5.34%, indicating that Whirlpool was able to control its operating costs more effectively and generate a reasonable profit margin from its operations.
Lastly, in 2024, the operating profit margin further decreased to 0.87%, suggesting that the company faced challenges in maintaining profitability, possibly due to factors such as competitive pressures or rising costs.
Overall, the fluctuation in Whirlpool Corporation's operating profit margin over the five-year period highlights the importance of closely monitoring and managing operating expenses to ensure sustainable profitability.
Peer comparison
Dec 31, 2024