Terex Corporation (TEX)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 518,000 | 300,000 | 220,900 | -10,600 | 54,400 |
| Revenue | US$ in thousands | 5,151,500 | 4,417,700 | 3,886,800 | 3,076,400 | 4,353,100 |
| Net profit margin | 10.06% | 6.79% | 5.68% | -0.34% | 1.25% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $518,000K ÷ $5,151,500K
= 10.06%
The net profit margin of Terex Corp. has shown a positive trend over the last five years, with the margin steadily increasing from -0.34% in 2020 to 10.06% in 2023. This indicates that the company has been able to improve its profitability and efficiency in generating profits from its revenue. The significant improvement in the net profit margin reflects better cost control measures, increased revenue generation, or a combination of both. Terex Corp.'s ability to consistently increase its net profit margin suggests effective management of costs and operations, which bodes well for its financial performance and overall business sustainability.