Gates Industrial Corporation plc (GTES)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 462,600 | 384,000 | 484,100 | 211,100 | 346,800 |
| Revenue | US$ in thousands | 3,570,200 | 3,554,200 | 3,474,400 | 2,793,000 | 3,087,100 |
| Operating profit margin | 12.96% | 10.80% | 13.93% | 7.56% | 11.23% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $462,600K ÷ $3,570,200K
= 12.96%
The operating profit margin of Gates Industrial Corporation plc has exhibited fluctuations over the past five years. In 2023, the operating profit margin increased to 12.96% from 10.80% in 2022, indicating an improvement in the company's ability to generate profits from its core operations. This is a positive trend and suggests enhanced efficiency in managing costs and increasing revenues.
Comparing the 2023 figure to the margins in 2021 (13.93%), 2020 (7.56%), and 2019 (11.23%), it is evident that the current margin is closer to the higher end of the historical range. The 2020 margin of 7.56% was notably lower, possibly due to the impacts of the global pandemic on operations.
Overall, the upward trend in the operating profit margin of Gates Industrial Corporation plc in 2023 reflects a positive trajectory towards profitability and operational effectiveness. It is essential for the company to sustain or further improve this margin to ensure long-term financial health and competitiveness in the market.
Peer comparison
Dec 31, 2023