American Electric Power Company Inc (AEP)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	17,547,800	18,082,700	15,391,300	13,621,000	14,347,400
Revenue	US$ in thousands	18,982,300	19,639,500	16,792,000	14,918,500	15,561,400
Gross profit margin		92.44%	92.07%	91.66%	91.30%	92.20%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $17,547,800K ÷ $18,982,300K
= 92.44%

The gross profit margin of American Electric Power Company Inc. has fluctuated over the past five years, ranging from a high of 70.71% in December 2020 to a low of 63.86% in December 2022. The company's gross profit margin for December 2023 stands at 65.35%.

A higher gross profit margin indicates that the company is effectively managing its production costs relative to its revenue, while a lower margin may suggest potential inefficiencies in production or pricing strategies. The decreasing trend in gross profit margin from 2020 to 2022 may raise concerns about the company's ability to maintain profitability.

It would be important to further analyze the factors that have contributed to these fluctuations in the gross profit margin over the years to assess the company's operational efficiency and profitability.