MasTec Inc (MTZ)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -1,178,690 | -890,207 | -193,387 | -111,914 | 362,406 |
| Revenue | US$ in thousands | 11,995,900 | 9,778,040 | 7,951,800 | 6,321,000 | 7,183,200 |
| Operating profit margin | -9.83% | -9.10% | -2.43% | -1.77% | 5.05% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-1,178,690K ÷ $11,995,900K
= -9.83%
The operating profit margin of MasTec Inc has been fluctuating over the past five years, exhibiting a downward trend from 5.05% in 2019 to -9.83% in 2023. This indicates a significant decline in the company's ability to generate profits from its core operations relative to its revenue. The negative margins in the last three years (2021 to 2023) suggest that the company's operating expenses have been relatively high compared to its sales, leading to operating losses.
The widening negative operating profit margins could be a cause for concern as it indicates that the company's operational efficiency and cost management may be deteriorating. This trend highlights a potential need for MasTec Inc to streamline its operations, control expenses, and improve revenue generation strategies in order to enhance profitability and financial performance in the future.
Peer comparison
Dec 31, 2023