Deere & Company (DE)
Operating profit margin
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 12,958,000 | 9,508,000 | 8,012,000 | 4,305,000 | 4,415,000 |
| Revenue | US$ in thousands | 61,251,000 | 52,577,000 | 44,024,000 | 35,540,000 | 39,258,000 |
| Operating profit margin | 21.16% | 18.08% | 18.20% | 12.11% | 11.25% |
October 29, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $12,958,000K ÷ $61,251,000K
= 21.16%
Deere & Co.'s operating profit margin has shown a positive trend over the past five years, indicating improved operational efficiency and profitability. The operating profit margin represents the percentage of revenue that remains as operating income after deducting operating expenses.
In October 2023, the operating profit margin stood at 21.25%, demonstrating a significant increase from 17.80% in October 2022 and 17.79% in October 2021. This upward trend suggests that Deere & Co. has been effective in managing its operating expenses and generating higher operating income relative to its revenue.
The notable improvement in the operating profit margin can be attributed to various factors such as cost control measures, increased productivity, and potentially higher selling prices for its products. This indicates that the company has been successful in optimizing its operations and generating stronger profitability from its core business activities.
Comparing the latest operating profit margin to the margins in November 2020 and November 2019 further highlights the company's sustained growth in this aspect. The operating profit margin has notably expanded from 12.92% in November 2020 to 21.25% in October 2023, indicating a substantial improvement in profitability over this period.
Overall, Deere & Co.'s increasing operating profit margin reflects positively on the company's ability to effectively manage its costs and enhance its operational efficiency, ultimately contributing to higher profitability and potential shareholder value. This trend reinforces the company's competitive position within the industry and suggests a positive outlook for its future financial performance.
Peer comparison
Oct 29, 2023