Terex Corporation (TEX)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 636,500 | 420,000 | 328,000 | 68,400 | 335,000 |
| Revenue | US$ in thousands | 5,151,500 | 4,417,700 | 3,886,800 | 3,076,400 | 4,353,100 |
| Operating profit margin | 12.36% | 9.51% | 8.44% | 2.22% | 7.70% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $636,500K ÷ $5,151,500K
= 12.36%
The operating profit margin of Terex Corp. has shown fluctuations over the past five years. In 2023, the operating profit margin increased to 12.36%, marking a significant improvement compared to the previous year's margin of 9.51%. This suggests that the company was able to generate more profit from its core business operations relative to its revenue.
Looking back, the operating profit margin was relatively stable in 2021 at 8.44%, but experienced a notable increase in 2022. However, in 2020, the margin was notably lower at 2.22%, indicating potential challenges or inefficiencies in the company's operations that year. The margin then rebounded in 2019 to 7.70%.
Overall, the upward trend in the operating profit margin from 2020 to 2023 reflects improved operational efficiency and profitability for Terex Corp. This positive trend signals that the company may have implemented effective cost controls, increased productivity, or benefitted from higher sales prices, contributing to its overall financial performance.