Caterpillar Inc (CAT)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 12,966,000 | 7,904,000 | 6,878,000 | 4,553,000 | 8,290,000 |
| Revenue | US$ in thousands | 67,060,000 | 59,427,000 | 50,971,000 | 41,748,000 | 53,800,000 |
| Operating profit margin | 19.33% | 13.30% | 13.49% | 10.91% | 15.41% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $12,966,000K ÷ $67,060,000K
= 19.33%
Caterpillar Inc.'s operating profit margin has shown a positive trend over the past five years, reflecting the company's ability to generate profits from its core operations. The operating profit margin increased from 15.41% in 2019 to 19.33% in 2023, indicating improved efficiency in managing operating expenses relative to revenue.
The consistent growth in operating profit margin signifies that Caterpillar has been effectively controlling its costs and optimizing its operational efficiency. This is a positive sign for investors as it indicates the company's ability to generate more profit from each dollar of sales.
Overall, the increasing trend in Caterpillar's operating profit margin highlights the company's strong operational performance and management effectiveness in recent years. It implies that Caterpillar has been successful in enhancing its profitability through efficient cost management and revenue generation strategies.
Peer comparison
Dec 31, 2023