The AES Corporation (AES)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,504,000 | 2,548,000 | 2,711,000 | 2,693,000 | 2,349,000 |
| Revenue | US$ in thousands | 12,668,000 | 12,617,000 | 11,141,000 | 9,660,000 | 10,189,000 |
| Gross profit margin | 19.77% | 20.19% | 24.33% | 27.88% | 23.05% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,504,000K ÷ $12,668,000K
= 19.77%
The gross profit margin of AES Corp. has shown a declining trend over the past five years. The margin decreased from 23.05% in 2019 to 19.77% in 2023, indicating a consistent decrease in the company's ability to generate profit from its core business activities. This downward trend could be attributed to various factors such as increasing costs of goods sold, pricing pressure in the market, or inefficiencies in production processes. The decreasing gross profit margin suggests that AES Corp. may be facing challenges in maintaining profitability at the gross level, possibly impacting its overall financial performance and competitiveness in the industry.