Why did operating profit fluctuate significantly across 2022-2024?

The operating profit of the companies in the sample fluctuated significantly across 2022-2024 due to various factors such as market conditions, business strategies, and industry trends. Here's a detailed analysis:

1. **Market Conditions and Economic Factors**:
- The global economic conditions, including inflationary pressures and supply chain constraints, have impacted the profitability of companies. For instance, Quaker Houghton faced challenges due to inflationary pressures and supply chain constraints, which affected its profitability.
- The macroeconomic conditions, such as unemployment and geopolitical conflicts, have also influenced the financial performance of companies. Genuine Parts Company experienced softer end-market demand due to macroeconomic conditions and inflationary pressures.
2. **Business Strategies and Initiatives**:
- Companies have implemented different strategies to mitigate the impact of market challenges and enhance profitability. For example, Lassonde Industries Inc. delivered strong profitable growth by contributing from Summer Garden, higher sales volume in the U.S., and top-line growth in Canada.
- Strategic acquisitions have also played a role in the fluctuating operating profits. Quaker Houghton's acquisition of Dipsol Chemicals expanded its advanced solutions portfolio and is expected to contribute to future growth.
3. **Industry Trends and Product Mix**:
- The performance of companies within the same industry can vary due to differences in product mix and market positioning. For instance, Johnson & Johnson's operating income showed a steady increase from $19.91 billion in 2022 to $22.19 billion in 2024, while other companies like Textron and Advance Auto Parts experienced fluctuations due to various factors.
4. **Foreign Exchange and Currency Impact**:
- Changes in foreign exchange rates have affected the financial results of multinational companies. Quaker Houghton's net sales were impacted by unfavorable foreign currency translation, which contributed to the decline in net sales and net income.
5. **Dividend and Share Repurchases**:
- Companies have also influenced their profitability through dividend policies and share repurchases. Genuine Parts Company increased its dividends for the 69th consecutive year and repurchased shares, which could impact the company's financials and shareholder returns.

In conclusion, the operating profit fluctuations across 2022-2024 are a result of a complex interplay of market conditions, business strategies, industry trends, and company-specific factors. Each company's response to these factors has led to varying degrees of profitability over the period.