Aecom Technology Corporation (ACM)
Gross profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 945,465 | 847,974 | 798,421 | 709,560 | 611,655 |
| Revenue | US$ in thousands | 14,378,500 | 13,148,200 | 13,340,900 | 13,240,000 | 13,642,500 |
| Gross profit margin | 6.58% | 6.45% | 5.98% | 5.36% | 4.48% |
September 30, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $945,465K ÷ $14,378,500K
= 6.58%
AECOM's gross profit margin has exhibited a consistent upward trend over the past five years. The gross profit margin has increased from 4.03% in 2019 to 6.58% in 2023. This improvement indicates that the company has been able to effectively control its cost of goods sold and/or increase the selling price of its products or services.
The rising gross profit margin suggests that AECOM has been able to enhance its operational efficiency and achieve a better balance between the costs of production and the selling price of its goods or services. This improvement may be attributed to various factors such as cost-cutting measures, better procurement strategies, improved pricing strategies, or a shift in product mix towards higher-margin offerings.
The consistent rise in gross profit margin is a positive indicator of AECOM's ability to generate more revenue from each dollar of sales after deducting the cost of goods sold. This trend is favorable for the company's overall profitability and may positively impact its bottom line. It also reflects positively on AECOM's management's effectiveness in controlling production costs and optimizing pricing strategies.
Overall, the steady increase in AECOM's gross profit margin over the past five years signifies a positive trend in the company's operational performance and financial health. However, it would be important to delve deeper into the company's financial statements and industry dynamics to gain a more comprehensive understanding of the factors driving this improvement.
Peer comparison
Sep 30, 2023