Adient PLC (ADNT)

Gross profit margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Gross profit	US$ in thousands	1,033,000	807,000	826,000	592,000	801,000
Revenue	US$ in thousands	15,395,000	14,121,000	13,680,000	12,670,000	16,526,000
Gross profit margin		6.71%	5.71%	6.04%	4.67%	4.85%

September 30, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,033,000K ÷ $15,395,000K
= 6.71%

The gross profit margin of Adient plc has shown variation over the past five years. The gross profit margin represents the percentage of revenue that exceeds the cost of goods sold, indicating the company's efficiency in producing and selling its products.

In 2019, the gross profit margin was 4.85%, which increased to 4.67% in 2020, indicating a slight decrease in the company's efficiency in controlling the cost of goods sold relative to its revenue. However, from 2020 to 2021, there was an improvement as the gross profit margin rose to 6.04%, signifying an enhanced ability to generate profit from its core operations.

This positive trend continued into 2022, with the gross profit margin further increasing to 5.71%. By 2023, the gross profit margin reached 6.71%, which reflects a notable improvement in the company's cost management and pricing strategies in relation to its products.

It is important to note that the increase in gross profit margin over the years suggests that the company has been able to either decrease the cost of goods sold or increase the selling price of its products, or possibly a combination of both. This is generally a positive sign, as it indicates improved profitability and efficiency in the company's operations.

Overall, the upward trend in Adient plc's gross profit margin demonstrates positive momentum in its ability to effectively manage its production and sales processes, ultimately contributing to the company's financial performance and potential for future growth.