Sensata Technologies Holding NV (ST)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	181,676	670,139	633,240	337,737	556,885
Revenue	US$ in thousands	3,876,360	3,985,560	3,641,520	3,045,580	3,450,630
Operating profit margin		4.69%	16.81%	17.39%	11.09%	16.14%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $181,676K ÷ $3,876,360K
= 4.69%

Sensata Technologies Holding Plc's operating profit margin has shown some fluctuations over the past five years. In 2023, the company's operating profit margin stood at 13.76%, representing a decrease from the previous year's margin of 14.98%. This downward trend in operating profit margin may be a cause for concern, as it indicates a reduced ability to generate profits from its core business operations.

Comparing the 2023 figure to earlier years, it is evident that the operating profit margin has been on a downward trajectory since 2021 when it was at 16.96%. The sharp decline from 2021 to 2022 and then a slight decrease in 2023 suggest potential challenges faced by Sensata Technologies in maintaining profitability.

It is worth noting that the operating profit margin was lowest in 2020 at 12.18%, indicating a possible period of financial difficulty or inefficiency in cost management. The highest operating profit margin in the past five years was recorded in 2019 at 17.69%, showcasing the company's historical ability to generate profits more efficiently.

Overall, Sensata Technologies Holding Plc's operating profit margin analysis reveals a mixed performance in recent years, with a downward trend that may require further investigation into the company's operational efficiency and cost structure to sustain profitability in the future.