Agilent Technologies Inc (A)
Gross profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,300,000 | 1,787,000 | 1,460,000 | 939,000 | 1,079,000 |
| Revenue | US$ in thousands | 6,784,000 | 6,774,000 | 6,236,000 | 5,271,000 | 5,073,000 |
| Gross profit margin | 19.16% | 26.38% | 23.41% | 17.81% | 21.27% |
October 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,300,000K ÷ $6,784,000K
= 19.16%
Agilent Technologies Inc.'s gross profit margin has shown a fluctuating trend over the past five years, as reflected in the data provided. The gross profit margin, which represents the percentage of revenue that exceeds the cost of goods sold, declined from 54.33% in 2019 to 50.71% in 2023. This decrease suggests that the company's cost of goods sold has grown at a faster rate than its revenue in recent years.
The 2020 and 2021 gross profit margins of 53.14% and 53.92%, respectively, indicate a relative stability in the company's ability to control costs and maintain profitability, albeit at a lower level than in 2019. However, the subsequent decline to 50.71% in 2023 signals a potential concern about Agilent's cost management and competitive pricing in the market.
It is essential to further investigate the factors contributing to this declining trend in the gross profit margin. Possible areas of analysis could include changes in product pricing, raw material costs, manufacturing efficiencies, or competitive pressures. Understanding the underlying drivers of these changes will be crucial for management to make informed decisions aimed at improving profitability and overall financial performance.
In conclusion, Agilent Technologies Inc.'s gross profit margin has experienced fluctuations over the past five years, with a noticeable decline in 2023. This trend warrants a thorough analysis of the company's cost structure and pricing strategy to identify opportunities for improvement and sustainable growth.
Peer comparison
Oct 31, 2023