Adient PLC (ADNT)

Gross profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	1,048,000	1,033,000	1,066,000	937,000	865,000	807,000	561,000	538,000	658,000	826,000	1,034,000	731,000	670,000	592,000	560,000	924,000	884,000	801,000	764,000	798,000
Revenue (ttm)	US$ in thousands	15,356,000	15,395,000	15,316,000	14,746,000	14,340,000	14,121,000	13,242,000	12,999,000	13,312,000	13,680,000	14,506,000	12,890,000	12,582,000	12,670,000	12,994,000	15,587,000	16,304,000	16,526,000	16,750,000	17,025,000
Gross profit margin		6.82%	6.71%	6.96%	6.35%	6.03%	5.71%	4.24%	4.14%	4.94%	6.04%	7.13%	5.67%	5.33%	4.67%	4.31%	5.93%	5.42%	4.85%	4.56%	4.69%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,048,000K ÷ $15,356,000K
= 6.82%

The gross profit margin of Adient plc has exhibited an improving trend over the past eight quarters, with the margin increasing from 4.14% in Q2 2022 to 6.82% in Q1 2024. This indicates that the company has been able to effectively control its cost of goods sold relative to its revenue, resulting in a higher percentage of each dollar of sales retained as gross profit. The steady rise in gross profit margin reflects positively on Adient's operational efficiency and profitability, suggesting improved pricing strategies, cost management, and potentially better product mix. It is important for the company to sustain this trend and continue focusing on strategies that enhance its gross profit margin to drive overall financial performance.