Operating Profit Margin
since 2005
Calculation
EMC Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 11.50% | = | 100 | × | 2,841) | ÷ | 24,704) |
| Dec 31, 2014 | 16.52% | = | 100 | × | 4,037) | ÷ | 24,440) |
| Dec 31, 2013 | 17.87% | = | 100 | × | 4,150) | ÷ | 23,222) |
| Dec 31, 2012 | 18.26% | = | 100 | × | 3,964) | ÷ | 21,714) |
| Dec 31, 2011 | 17.21% | = | 100 | × | 3,442) | ÷ | 20,008) |
| Dec 31, 2010 | 15.77% | = | 100 | × | 2,683) | ÷ | 17,015) |
| Dec 31, 2009 | 10.08% | = | 100 | × | 1,414) | ÷ | 14,026) |
| Dec 31, 2008 | 10.55% | = | 100 | × | 1,569) | ÷ | 14,876) |
| Dec 31, 2007 | 13.15% | = | 100 | × | 1,739) | ÷ | 13,230) |
| Dec 31, 2006 | 10.83% | = | 100 | × | 1,208) | ÷ | 11,155) |
| Dec 31, 2005 | 15.32% | = | 100 | × | 1,480) | ÷ | 9,664) |
Based on: 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 millions
The financial performance from 2005 to 2015 is characterized by consistent revenue growth paired with fluctuating operational efficiency. While total revenues increased from US$ 9,664 million to US$ 24,704 million over the eleven-year period, the operating profit margin experienced three distinct phases: an initial decline, a period of significant expansion, and a subsequent contraction.
- Initial Margin Compression (2005–2009)
- A downward trend in profitability is observed during the first five years, with the operating profit margin falling from 15.32% in 2005 to a low of 10.08% in 2009. This decline occurred despite a general increase in revenues, indicating that operating expenses outpaced revenue growth during this timeframe.
- Operational Efficiency Gains (2010–2012)
- A period of strong recovery and expansion followed, as the operating profit margin rose sharply from 15.77% in 2010 to a peak of 18.26% in 2012. This phase represents the highest level of operational profitability in the analyzed period, with operating income increasing from US$ 2,683 million to US$ 3,964 million.
- Recent Profitability Decline (2013–2015)
- A gradual erosion of margins is evident starting in 2013, with the operating profit margin decreasing to 11.50% by 2015. Of particular note is the 2015 fiscal year, where operating income dropped to US$ 2,841 million despite revenues reaching a period high of US$ 24,704 million, signaling a substantial increase in the cost of operations relative to sales.
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Comparison to Competitors
EMC Corp., operating profit margin, long-term trends, comparison to competitors
| EMC Corp. | 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, 2015 | 11.50% | -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 | 16.52% | -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 | 17.87% | 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 | 18.26% | -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 | 17.21% | 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 | 15.77% | 13.06% | 32.59% | 14.49% | 22.26% | 35.73% | 19.94% | 11.90% | 18.73% | -2.97% | 29.87% | 32.32% |
| Dec 31, 2009 | 10.08% | 12.29% | 14.14% | -7.85% | 3.23% | 16.26% | -25.20% | 5.60% | -34.87% | -2.06% | 21.37% | 19.09% |
| Dec 31, 2008 | 10.55% | -33.66% | 24.20% | 16.67% | — | 23.82% | 20.58% | -3.65% | -27.31% | 20.41% | 33.48% | 19.49% |
| Dec 31, 2007 | 13.15% | -47.65% | 22.24% | 24.36% | — | 21.43% | 30.34% | 0.05% | -4.92% | 14.78% | 32.50% | 25.28% |
| Dec 31, 2006 | 10.83% | -0.83% | 21.44% | 22.04% | — | 15.97% | 24.74% | 21.54% | 6.64% | 14.32% | 35.74% | 23.62% |
| Dec 31, 2005 | 15.32% | 3.96% | 21.60% | 20.71% | — | 31.14% | 26.02% | 13.22% | 4.46% | 5.65% | 42.06% | 20.84% |
Based on: 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).