Terex Corporation (TEX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.83% | 22.85% | 19.72% | 19.49% | 17.53% |
| Operating profit margin | 10.26% | 12.36% | 9.51% | 8.44% | 2.22% |
| Pretax margin | 7.96% | 11.28% | 8.29% | 6.87% | -0.28% |
| Net profit margin | 6.53% | 10.05% | 6.79% | 5.68% | -0.34% |
Terex Corporation has shown an improving trend in its profitability ratios over the years. The gross profit margin has gradually increased from 17.53% in 2020 to 20.83% in 2024, indicating that the company has been able to effectively control its production costs and generate higher profits on sales.
The operating profit margin has also shown a positive trajectory, rising from 2.22% in 2020 to 10.26% in 2024. This suggests that Terex has been able to enhance its operational efficiency and increase profitability from its core business activities.
Similarly, the pretax margin and net profit margin have exhibited consistent growth over the period. The pretax margin improved from -0.28% in 2020 to 7.96% in 2024, while the net profit margin increased from -0.34% to 6.53% during the same period. This indicates that Terex has managed its pre-tax expenses effectively and has been able to translate its revenues into higher profit after taxes.
Overall, Terex Corporation's profitability ratios reflect a positive trend, indicating an improvement in the company's ability to generate profits and manage its costs efficiently over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.18% | 17.62% | 13.47% | 11.45% | 2.26% |
| Return on assets (ROA) | 5.85% | 14.33% | 9.62% | 7.71% | -0.35% |
| Return on total capital | 27.13% | 28.11% | 21.26% | 17.92% | 2.74% |
| Return on equity (ROE) | 18.29% | 30.98% | 25.40% | 19.91% | -1.15% |
Terex Corporation's profitability ratios have shown a positive trend over the years analyzed. The Operating Return on Assets (Operating ROA) improved significantly from 2.26% in 2020 to 17.62% in 2023, although it dipped slightly to 9.18% in 2024. This indicates that the company's operating income generated from its assets has been increasing, with a notable spike in 2023.
Return on Assets (ROA) also displayed positive growth, starting from a negative -0.35% in 2020 to reach 14.33% in 2023 before settling at 5.85% in 2024. This ratio reflects the overall profitability of Terex Corporation in relation to its total assets, with a consistent improvement over the years analyzed.
Return on Total Capital experienced a remarkable surge from 2.74% in 2020 to 28.11% in 2023, indicating an increasing return generated from the total capital employed by the company. The ratio remained strong at 27.13% in 2024, suggesting efficient capital utilization by Terex Corporation.
Return on Equity (ROE) also witnessed a positive growth trajectory, climbing from -1.15% in 2020 to 30.98% in 2023. However, there was a slight decline to 18.29% in 2024. This ratio signifies the return generated for the shareholders on their equity investments and highlights the company's ability to generate profits from shareholders' funds.
Overall, the profitability ratios demonstrate a favorable performance for Terex Corporation, with improvements in operational efficiency, asset utilization, capital management, and shareholder returns over the years analyzed.