Williams Companies Inc (WMB)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 3,339,000 4,311,000 3,018,000 2,631,000 2,202,000
Revenue US$ in thousands 10,503,000 10,907,000 10,965,000 10,627,000 7,719,000
Operating profit margin 31.79% 39.53% 27.52% 24.76% 28.53%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $3,339,000K ÷ $10,503,000K
= 31.79%

The operating profit margin of Williams Companies Inc has shown fluctuations over the past five years. In December 2020, the operating profit margin stood at 28.53%, indicating that the company generated 28.53 cents of operating profit for every dollar of sales. By the end of December 2021, the margin decreased to 24.76%, reflecting a decline in the company's profitability relative to its revenue.

However, there was a rebound in the operating profit margin by December 2022, rising to 27.52%. This suggests that the company managed to improve its profitability compared to the previous year. The most significant increase was observed by the end of December 2023, with the operating profit margin jumping to 39.53%, indicating a substantial improvement in operational efficiency and profitability.

In the latest period, December 2024, the operating profit margin dipped slightly to 31.79%. Overall, the trend indicates some volatility in the company's operating profit margin, but there have also been notable periods of improvement in efficiency and profitability. It is important for investors and stakeholders to monitor these fluctuations to assess the company's financial performance and sustainability.