Terex Corporation (TEX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.84% | 19.72% | 19.49% | 17.53% | 20.39% |
| Operating profit margin | 12.36% | 9.51% | 8.44% | 2.22% | 7.70% |
| Pretax margin | 11.28% | 8.29% | 6.87% | -0.28% | 2.12% |
| Net profit margin | 10.06% | 6.79% | 5.68% | -0.34% | 1.25% |
Terex Corp.'s profitability ratios have shown a positive trend over the past five years. The gross profit margin has been improving steadily, increasing from 20.39% in 2019 to 22.84% in 2023. This indicates that the company has been able to effectively manage its cost of goods sold and generate higher profits on sales.
Similarly, the operating profit margin has also been on an upward trajectory, rising from 7.70% in 2019 to 12.36% in 2023. This demonstrates that Terex Corp. has been able to control its operating expenses more efficiently, resulting in higher profits from its core business operations.
The pretax margin and net profit margin have also shown significant improvement, indicating that the company has been able to effectively manage its overall expenses and increase its profitability. The pretax margin increased from 5.69% in 2019 to 11.25% in 2023, while the net profit margin improved from 1.25% to 10.06% during the same period.
Overall, the positive trend in Terex Corp.'s profitability ratios reflects the company's ability to enhance operational efficiency, control costs, and drive profitability over the years. This indicates a strong financial performance and effective management of its resources.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.60% | 13.47% | 11.45% | 2.26% | 10.48% |
| Return on assets (ROA) | 14.33% | 9.62% | 7.71% | -0.35% | 1.70% |
| Return on total capital | 38.53% | 21.26% | 17.92% | 2.74% | 8.57% |
| Return on equity (ROE) | 30.98% | 25.40% | 19.91% | -1.15% | 5.84% |
Terex Corp.'s profitability ratios have shown a positive trend over the past five years, indicating an improvement in the company's financial performance.
1. Operating return on assets (Operating ROA) has steadily increased from 10.48% in 2019 to 17.60% in 2023. This ratio measures the company's operating income generated per dollar of assets, indicating that Terex Corp. has become more efficient in utilizing its assets to generate operating profits.
2. Return on assets (ROA) has also shown a positive trend, increasing from 1.70% in 2019 to 14.33% in 2023. This ratio reflects the overall profitability of the company in relation to its total assets, and the significant improvement demonstrates the effectiveness of Terex Corp.'s asset management and operational efficiency.
3. Return on total capital has consistently risen over the years, reaching 27.73% in 2023 from 15.89% in 2019. This ratio indicates the overall return generated on the total invested capital, including both equity and debt. The increasing trend suggests that the company has been successful in generating higher returns for its providers of capital.
4. Return on equity (ROE) has shown a remarkable improvement, rising from 5.84% in 2019 to 30.98% in 2023. ROE measures the return on shareholders' equity, reflecting the profitability of the company for its equity investors. The substantial increase in ROE indicates that Terex Corp. has been able to generate significant profits relative to its shareholders' investments.
Overall, the positive trend in profitability ratios demonstrates that Terex Corp. has been successful in improving its operational efficiency, asset utilization, and overall financial performance over the last five years. This indicates a strong and improving financial position for the company.