Calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 23.35% | = | 100 | × | 2,583) | ÷ | 11,063) |
| Dec 31, 2020 | 4.85% | = | 100 | × | 418) | ÷ | 8,612) |
| Dec 31, 2019 | 7.22% | = | 100 | × | 641) | ÷ | 8,877) |
| Dec 31, 2018 | 28.81% | = | 100 | × | 2,710) | ÷ | 9,407) |
| Dec 31, 2017 | 22.71% | = | 100 | × | 2,102) | ÷ | 9,256) |
| Dec 31, 2016 | -1.58% | = | 100 | × | (150) | ÷ | 9,498) |
| Dec 31, 2015 | 33.03% | = | 100 | × | 2,015) | ÷ | 6,101) |
| Dec 31, 2014 | 18.58% | = | 100 | × | 1,049) | ÷ | 5,647) |
| Dec 31, 2013 | 13.52% | = | 100 | × | 651) | ÷ | 4,815) |
| Dec 31, 2012 | 9.45% | = | 100 | × | 412) | ÷ | 4,358) |
| Dec 31, 2011 | 8.51% | = | 100 | × | 357) | ÷ | 4,194) |
| Dec 31, 2010 | 6.20% | = | 100 | × | 273) | ÷ | 4,402) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31), 20-F (reporting date: 2016-12-31), 20-F (reporting date: 2015-12-31), 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 US$ in millions
The operating profit margin exhibits significant volatility over the analyzed period, characterized by cycles of aggressive expansion, sharp contractions, and subsequent recoveries. While revenue generally trended upward from 2010 to 2021, the operating margin did not follow a linear path, reflecting fluctuations in operational efficiency and external financial pressures.
- Initial Growth Phase (2010-2015)
- A period of sustained margin expansion is observed from 2010 through 2015. The operating profit margin grew consistently from 6.20% to a peak of 33.03%. This trend indicates that operating income grew at a significantly faster rate than revenue during this window, suggesting successful cost management or an increase in the sale of higher-margin products.
- The 2016 Contraction
- A severe divergence occurs in 2016, where the operating profit margin collapsed to -1.58%. This downturn is notable because it coincided with a substantial increase in revenue, which rose from 6,101 million US$ to 9,498 million US$. The shift from a high positive margin to a negative operating loss suggests the occurrence of significant one-time expenses or integration costs that outweighed the gains from increased sales.
- Recovery and Subsequent Decline (2017-2020)
- Following the 2016 deficit, a rapid recovery was observed, with margins returning to 22.71% in 2017 and reaching 28.81% in 2018. However, this stability was short-lived; a downward trend emerged in 2019 and 2020, with the margin falling to 7.22% and further to 4.85%, respectively. This period shows a contraction in operating income despite relatively stable revenue figures.
- Recent Performance (2021)
- The most recent annual data indicates a strong rebound. The operating profit margin increased sharply to 23.35% by December 31, 2021. This recovery was driven by both a significant increase in revenue to 11,063 million US$ and a corresponding surge in operating income to 2,583 million US$, signaling a return to higher operational profitability.
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Comparison to Competitors
| NXP Semiconductors N.V. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 23.35% | 22.20% | 23.12% | 29.87% | 31.03% | 24.62% | 30.64% | -8.70% | 22.68% | 27.18% | 29.16% | 48.84% |
| Dec 31, 2020 | 4.85% | 14.02% | 26.74% | 25.37% | 16.80% | 30.41% | 26.62% | -9.02% | 14.01% | 26.07% | 26.58% | 40.76% |
| Dec 31, 2019 | 7.22% | 9.37% | 28.55% | 22.93% | 15.24% | 30.62% | 25.53% | 1.51% | 31.51% | 32.47% | 31.59% | 39.79% |
| Dec 31, 2018 | 28.81% | 6.97% | 30.35% | 27.80% | 24.63% | 32.91% | 29.01% | 17.84% | 49.34% | 33.05% | 3.26% | 42.53% |
| Dec 31, 2017 | 22.71% | 3.83% | 20.66% | 26.61% | 13.51% | 28.58% | 23.74% | 4.31% | 28.88% | 27.99% | 11.73% | 40.66% |
| Dec 31, 2016 | -1.58% | -8.71% | 30.05% | 19.88% | -3.09% | 21.68% | 18.25% | -29.96% | 1.35% | 14.91% | 27.57% | 35.89% |
| Dec 31, 2015 | 33.03% | -12.05% | 24.19% | 17.53% | 23.92% | 25.29% | 14.98% | 11.03% | 18.52% | 16.21% | 22.85% | 32.88% |
| Dec 31, 2014 | 18.58% | -2.82% | 26.27% | 16.75% | 10.26% | 27.47% | 14.71% | 8.24% | 18.87% | 12.01% | 28.50% | 30.26% |
| Dec 31, 2013 | 13.52% | 1.94% | 28.59% | 5.75% | 21.90% | 23.32% | 3.28% | 9.30% | 2.60% | 15.15% | 29.08% | 23.20% |
| Dec 31, 2012 | 9.45% | -19.48% | 30.51% | 4.71% | 24.62% | 27.44% | 8.92% | 17.81% | -7.51% | 16.22% | 29.72% | 15.38% |
| Dec 31, 2011 | 8.51% | 5.60% | 35.81% | 22.80% | 25.00% | 32.37% | 24.84% | 24.95% | 8.59% | 7.22% | 33.60% | 21.78% |
| Dec 31, 2010 | 6.20% | 13.06% | 32.59% | 14.49% | 22.26% | 35.73% | 19.94% | 11.90% | 18.73% | -2.97% | 29.87% | 32.32% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31), 20-F (reporting date: 2016-12-31), 20-F (reporting date: 2015-12-31), 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).