AAON Inc (AAON)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 399,020 | 237,572 | 137,830 | 155,849 | 119,425 |
| Revenue | US$ in thousands | 1,163,700 | 891,921 | 538,159 | 524,604 | 469,090 |
| Gross profit margin | 34.29% | 26.64% | 25.61% | 29.71% | 25.46% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $399,020K ÷ $1,163,700K
= 34.29%
AAON Inc.'s gross profit margin has shown a positive trend over the five-year period from 2019 to 2023. The company's gross profit margin increased from 25.45% in 2019 to 34.15% in 2023, indicating improved efficiency in generating revenue after accounting for the cost of goods sold.
The significant improvement in the gross profit margin from 2019 to 2023 suggests effective cost management, pricing strategies, or potentially higher selling prices. This increase indicates that AAON Inc. has been able to maintain a stronger position in its industry, despite potential challenges.
Moreover, the company's gross profit margin in 2023 (34.15%) reflects a relatively healthy level compared to the margins in the preceding years. This could imply that AAON Inc. is effectively controlling its production costs and/or benefitting from economies of scale.
Overall, the increasing trend in AAON Inc.'s gross profit margin from 2019 to 2023 indicates positive operational performance and efficiency in generating profits from its core business activities.
Peer comparison
Dec 31, 2023