Terex Corporation (TEX)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,176,600 | 871,200 | 757,400 | 539,300 | 887,800 |
| Revenue | US$ in thousands | 5,151,500 | 4,417,700 | 3,886,800 | 3,076,400 | 4,353,100 |
| Gross profit margin | 22.84% | 19.72% | 19.49% | 17.53% | 20.39% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,176,600K ÷ $5,151,500K
= 22.84%
Terex Corp.'s gross profit margin has shown fluctuations over the past five years. The margin increased from 20.39% in 2019 to 22.84% in 2023, indicating an improvement in the company's ability to generate revenue after accounting for the cost of goods sold. This upward trend suggests better cost management or potentially higher selling prices relative to production costs. However, it is essential to note the variability in the margin over the years, with fluctuations observed in 2020, 2021, and 2022. Further analysis is recommended to understand the underlying factors contributing to these changes and to assess the sustainability of the recent improvement in gross profit margin.