Terex Corporation (TEX)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 526,000 | 637,000 | 420,000 | 328,000 | 68,400 |
| Revenue | US$ in thousands | 5,127,000 | 5,152,000 | 4,417,700 | 3,886,800 | 3,076,400 |
| Operating profit margin | 10.26% | 12.36% | 9.51% | 8.44% | 2.22% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $526,000K ÷ $5,127,000K
= 10.26%
Terex Corporation's operating profit margin has exhibited an upward trend over the past five years, reflecting improved operational efficiency and profitability. The margin increased from 2.22% in December 2020 to 10.26% in December 2024. This signifies that the company has been able to generate more profit from each dollar of sales. The significant improvement in the operating profit margin suggests that Terex Corporation has been successful in controlling its operating costs and enhancing productivity. However, the slight decrease in the margin from 2023 to 2024 may warrant further investigation to understand the underlying factors impacting profitability during that period.