Terex Corporation (TEX)
Gross profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 1,176,600 | 1,149,500 | 1,094,100 | 964,100 | 871,200 | 807,700 | 749,100 | 767,800 | 757,400 | 734,700 | 702,500 | 578,000 | 539,300 | 558,700 | 622,000 | 786,700 | 887,800 | 933,800 | 964,300 | 971,100 |
| Revenue (ttm) | US$ in thousands | 5,151,500 | 5,146,500 | 4,976,900 | 4,650,900 | 4,417,700 | 4,190,200 | 4,063,500 | 4,025,100 | 3,886,800 | 3,683,400 | 3,455,200 | 3,107,000 | 3,076,400 | 3,174,700 | 3,433,700 | 4,050,100 | 4,353,100 | 4,093,400 | 4,297,300 | 4,243,400 |
| Gross profit margin | 22.84% | 22.34% | 21.98% | 20.73% | 19.72% | 19.28% | 18.43% | 19.08% | 19.49% | 19.95% | 20.33% | 18.60% | 17.53% | 17.60% | 18.11% | 19.42% | 20.39% | 22.81% | 22.44% | 22.88% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,176,600K ÷ $5,151,500K
= 22.84%
Terex Corp.'s gross profit margin has shown a generally positive trend over the past eight quarters, reflecting improved cost management and pricing strategies. The margins have steadily increased from 19.08% in Q1 2022 to 22.84% in Q4 2023. This indicates that the company is effectively controlling its cost of goods sold and/or increasing its selling prices relative to its revenue.
The gradual improvement in gross profit margin suggests that Terex Corp. may be benefiting from economies of scale, operational efficiencies, or favorable pricing dynamics. It is also indicative of the company's ability to generate stronger profits from its core business activities.
However, fluctuations in the margin from quarter to quarter should be further investigated to assess the impact of factors such as changes in input costs, pricing pressures, or shifts in sales mix. Overall, the increasing trend in gross profit margin is a positive signal of Terex Corp.'s improving profitability and operational performance.