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%
AGCO Corporation
AGCO
11.80%
Deere & Company
DE
21.16%
Lindsay Corporation
LNN
15.16%