Alamo Group Inc (ALG)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	197,967	148,592	116,938	94,785	94,912
Revenue	US$ in thousands	1,689,650	1,513,620	1,334,220	1,163,470	1,119,140
Operating profit margin		11.72%	9.82%	8.76%	8.15%	8.48%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $197,967K ÷ $1,689,650K
= 11.72%

Alamo Group Inc.'s operating profit margin has exhibited an upward trend over the past five years. The company's operating profit margin increased from 8.46% in 2019 to 11.72% in 2023, reflecting improved operational efficiency and cost management. This indicates that Alamo Group has been able to generate more operating income per dollar of revenue, suggesting better profitability and effective control over operating expenses. The consistent growth in operating profit margin demonstrates the company's ability to sustain and potentially enhance its profitability levels in the future.

Peer comparison

Dec 31, 2023

Company name

Symbol

Operating profit margin

Alamo Group Inc

ALG

11.72%