The AES Corporation (AES)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,314,000 | 2,504,000 | 2,548,000 | 2,711,000 | 2,693,000 |
| Revenue | US$ in thousands | 12,278,000 | 12,668,000 | 12,617,000 | 11,141,000 | 9,660,000 |
| Gross profit margin | 18.85% | 19.77% | 20.19% | 24.33% | 27.88% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,314,000K ÷ $12,278,000K
= 18.85%
The gross profit margin of The AES Corporation has shown a declining trend over the past five years. In December 2020, the gross profit margin was 27.88%, indicating that the company was able to maintain a relatively high level of profitability from its core business operations. However, by December 2024, the gross profit margin had decreased to 18.85%, reflecting a decrease in the percentage of revenue retained as gross profit.
This decline in the gross profit margin could signal potential challenges in managing production costs or pricing strategies. It may also suggest increasing competition or pricing pressures within the industry, impacting the company's ability to generate profit from its operations.
Overall, the decreasing trend in the gross profit margin of The AES Corporation indicates a need for careful monitoring and potential strategic adjustments to improve operational efficiency and competitiveness in the market.