Sensata Technologies Holding NV (ST)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 149,276 | 181,676 | 508,821 | 633,240 | 337,737 |
| Revenue | US$ in thousands | 3,932,760 | 4,054,080 | 4,029,260 | 3,820,810 | 3,045,580 |
| Operating profit margin | 3.80% | 4.48% | 12.63% | 16.57% | 11.09% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $149,276K ÷ $3,932,760K
= 3.80%
The operating profit margin of Sensata Technologies Holding NV has fluctuated over the past five years. It increased from 11.09% as of December 31, 2020, to 16.57% as of December 31, 2021, indicating an improvement in profitability. However, there was a decrease in the operating profit margin to 12.63% as of December 31, 2022. Subsequently, there was a significant decline in the margin to 4.48% as of December 31, 2023, and a further drop to 3.80% as of December 31, 2024.
The declining trend in the operating profit margin over the last two years suggests that Sensata Technologies Holding NV may be facing challenges in controlling its operating expenses relative to its revenue generation. This could be a cause for concern as it indicates a potential impact on the company's overall profitability.
It would be important for stakeholders and investors to closely monitor the company's operating efficiency and cost management strategies to ensure sustainable and improved profitability in the future.
Peer comparison
Dec 31, 2024