Calculation
Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Net sales1 | |
---|---|---|---|---|---|---|---|
Dec 31, 2021 | 23.36% | = | 100 | × | 4,301,105) | ÷ | 18,408,850) |
Dec 31, 2020 | 8.82% | = | 100 | × | 847,142) | ÷ | 9,601,482) |
Dec 31, 2019 | 9.43% | = | 100 | × | 986,880) | ÷ | 10,464,991) |
Dec 31, 2018 | 14.57% | = | 100 | × | 1,722,409) | ÷ | 11,821,839) |
Dec 31, 2017 | 11.18% | = | 100 | × | 1,066,881) | ÷ | 9,538,797) |
Dec 31, 2016 | 9.36% | = | 100 | × | 727,966) | ÷ | 7,777,109) |
Dec 31, 2015 | -0.96% | = | 100 | × | (72,784) | ÷ | 7,594,411) |
Dec 31, 2014 | 3.66% | = | 100 | × | 320,320) | ÷ | 8,755,952) |
Dec 31, 2013 | 5.24% | = | 100 | × | 386,525) | ÷ | 7,372,924) |
Dec 31, 2012 | 5.37% | = | 100 | × | 391,165) | ÷ | 7,290,234) |
Dec 31, 2011 | 7.31% | = | 100 | × | 584,820) | ÷ | 7,997,500) |
Dec 31, 2010 | 5.79% | = | 100 | × | 364,753) | ÷ | 6,300,887) |
Dec 31, 2009 | 3.02% | = | 100 | × | 119,531) | ÷ | 3,958,806) |
Dec 31, 2008 | 10.58% | = | 100 | × | 855,240) | ÷ | 8,080,521) |
Dec 31, 2007 | 15.76% | = | 100 | × | 691,154) | ÷ | 4,384,549) |
Dec 31, 2006 | 20.35% | = | 100 | × | 659,114) | ÷ | 3,238,787) |
Dec 31, 2005 | 18.00% | = | 100 | × | 393,175) | ÷ | 2,184,866) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The operating income demonstrated considerable volatility over the period under review. Starting at a level of 393,175 thousand US dollars in 2005, it broadly increased to reach a peak of 1,722,409 thousand US dollars by 2018, followed by a significant decline, then a notable surge to 4,301,105 thousand US dollars in 2021. The interim years showed fluctuations, including a substantial operating loss in 2015, which deviated sharply from the general upward trend observed before and after that year.
Net sales exhibited a general upward trajectory with some fluctuations over the years. Sales nearly quadrupled from approximately 2,184,866 thousand US dollars in 2005 to exceed 11,821,839 thousand US dollars by 2018. After a slight contraction in 2019 and 2020, sales rebounded strongly, culminating in a substantial increase to over 18,408,850 thousand US dollars in 2021. The pattern indicates periods of rapid growth followed by brief contractions, ultimately reflecting significant expansion over the full period analyzed.
The operating profit margin displayed variability but an overall widening trend toward higher profitability by the end of the series. The margin started at 18% in 2005, initially declined to lows around 3% in 2009 and even dipped into negative territory in 2015 (-0.96%). From 2015 onward, the margin improved significantly, reaching 23.36% in 2021, the highest point in the dataset. This increase suggests enhanced operational efficiency or improved cost control measures in recent years, coinciding with the spikes in operating income.
- Summary of Key Trends
- The financial data reflect robust growth in net sales over the 17-year period, interrupted by temporary declines but with significant recovery and expansion toward the end.
- Operating income showed greater variability but ultimately surged, particularly in 2021, reflecting improved profitability and possibly scale efficiencies or favorable market conditions.
- Operating profit margin trends indicate challenges in profitability during the mid-period, with marked improvement and stronger margins in recent years, signaling better cost management or improved pricing power.
- The year 2015 stands out as an anomaly with negative operating income and margin, suggesting considerable operational challenges or extraordinary expenses in that year.
- The combined trends in sales, operating income, and margin suggest an overall strengthening financial performance with increased scale and enhanced profitability, especially evident in the final years of the data.
Comparison to Competitors
Steel Dynamics Inc. | Freeport-McMoRan Inc. | |
---|---|---|
Dec 31, 2021 | 23.36% | 36.62% |
Dec 31, 2020 | 8.82% | 17.16% |
Dec 31, 2019 | 9.43% | 7.58% |
Dec 31, 2018 | 14.57% | 25.52% |
Dec 31, 2017 | 11.18% | 22.15% |
Dec 31, 2016 | 9.36% | -18.83% |
Dec 31, 2015 | -0.96% | -84.29% |
Dec 31, 2014 | 3.66% | 0.45% |
Dec 31, 2013 | 5.24% | 25.58% |
Dec 31, 2012 | 5.37% | 32.28% |
Dec 31, 2011 | 7.31% | 43.77% |
Dec 31, 2010 | 5.79% | 47.77% |
Dec 31, 2009 | 3.02% | 43.24% |
Dec 31, 2008 | 10.58% | -71.42% |
Dec 31, 2007 | 15.76% | 38.70% |
Dec 31, 2006 | 20.35% | 49.54% |
Dec 31, 2005 | 18.00% | 52.10% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).