Alcoa Corp (AA)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,851,000 | 738,000 | 2,239,000 | 2,999,000 | 1,317,000 |
| Revenue | US$ in thousands | 11,895,000 | 10,551,000 | 12,451,000 | 12,152,000 | 9,286,000 |
| Gross profit margin | 15.56% | 6.99% | 17.98% | 24.68% | 14.18% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,851,000K ÷ $11,895,000K
= 15.56%
From the data provided, it is evident that Alcoa Corp's gross profit margin has fluctuated over the past five years. In December 2020, the gross profit margin stood at 14.18%, indicating that the company was generating $0.1418 in gross profit for every dollar of revenue.
By December 2021, the gross profit margin had improved significantly to 24.68%, suggesting a higher level of efficiency in managing production costs and a better pricing strategy. This improvement was a positive sign for the company's profitability.
However, in December 2022, there was a decline in the gross profit margin to 17.98%, which might indicate challenges in maintaining cost control or facing pricing pressures in the market.
The following year, in December 2023, the gross profit margin further decreased to 6.99%, which may raise concerns about the company's ability to generate profit from its core operations.
In December 2024, the gross profit margin recovered slightly to 15.56%, showing a partial improvement from the previous year but still below the levels seen in 2021 and 2022.
Overall, the fluctuating trend in Alcoa Corp's gross profit margin over the five-year period underscores the importance of closely monitoring cost structures, pricing strategies, and overall operational efficiency to sustain and enhance profitability in the competitive environment of the industry.
Peer comparison
Dec 31, 2024