Ziff Davis Inc (ZD)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 132,611 | 198,941 | 167,340 | 138,340 | 88,223 |
| Revenue | US$ in thousands | 1,364,030 | 1,391,000 | 1,416,720 | 1,158,830 | 1,050,460 |
| Operating profit margin | 9.72% | 14.30% | 11.81% | 11.94% | 8.40% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $132,611K ÷ $1,364,030K
= 9.72%
The operating profit margin of Ziff Davis Inc has shown fluctuations over the past five years. In 2023, the operating profit margin decreased to 13.89% from 16.27% in 2022, indicating a decline in the company's ability to generate profit from its core operations. This could be a cause for concern as it suggests a potential decrease in operating efficiency or higher operating expenses relative to revenues.
Comparing the operating profit margin to previous years, the margin in 2023 is lower than the margins in 2020 and 2019, which were 22.46% and 20.19% respectively. This further emphasizes the decline in profitability in the most recent year.
Additionally, the operating profit margin in 2023 is slightly higher than in 2021, which was 14.11%. While there was an improvement from 2021 to 2022, the recent decrease in 2023 indicates a reversal of this positive trend.
In summary, the downward trend in Ziff Davis Inc's operating profit margin over the past five years suggests a potential challenge in maintaining profitability from its core operations. It would be advisable for the company to further analyze the factors contributing to this decline and implement strategies to improve operating efficiency and profitability.