Alcoa Corp (AA)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 293,000 | 1,731,000 | 3,321,000 | 904,000 | -44,000 |
| Revenue | US$ in thousands | 10,494,000 | 12,326,000 | 11,911,000 | 9,120,000 | 10,296,000 |
| Gross profit margin | 2.79% | 14.04% | 27.88% | 9.91% | -0.43% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $293,000K ÷ $10,494,000K
= 2.79%
The gross profit margin of Alcoa Corp has exhibited fluctuations over the past five years. In 2023, the gross profit margin decreased to 6.99% from 17.98% in 2022, marking a significant decline. This decrease may indicate challenges faced by the company in maintaining profitability in the most recent year.
Comparing 2023 to 2021, there was a notable drop in gross profit margin from 24.68% to 6.99%. This significant decline suggests a substantial decrease in the company's ability to generate profits from its core operations between these two years.
In 2020, the gross profit margin was 14.18%, which was lower than in 2021 but higher than in 2023. This implies that the company's profitability improved from 2020 to 2021 but deteriorated again by 2023.
In 2019, the gross profit margin was 18.17%, indicating a higher level of profitability compared to subsequent years, except for 2021. The decline in gross profit margin over the years highlights the importance for Alcoa Corp to focus on strategies to enhance operational efficiency and revenue generation to improve its profitability in the future.
Peer comparison
Dec 31, 2023