Allegion PLC (ALLE)
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 | 583,400 | 591,500 | 563,800 | 528,800 | 487,800 | 489,400 | 464,900 | 462,800 | 474,000 | 372,400 | 392,300 | 341,600 | 237,800 | 316,400 | 323,400 | 371,000 | 451,100 | 538,000 | 495,200 | 478,300 |
| Revenue (ttm) | US$ in thousands | 3,553,800 | 3,529,000 | 3,524,800 | 3,385,400 | 3,186,000 | 3,072,600 | 2,875,900 | 2,849,700 | 2,820,400 | 2,833,700 | 2,845,100 | 2,687,700 | 2,668,100 | 2,621,500 | 2,641,400 | 2,783,100 | 2,763,400 | 2,783,600 | 2,746,800 | 2,720,300 |
| Gross profit margin | 16.42% | 16.76% | 16.00% | 15.62% | 15.31% | 15.93% | 16.17% | 16.24% | 16.81% | 13.14% | 13.79% | 12.71% | 8.91% | 12.07% | 12.24% | 13.33% | 16.32% | 19.33% | 18.03% | 17.58% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $583,400K ÷ $3,553,800K
= 16.42%
Allegion plc's gross profit margin has shown a generally positive trend over the past eight quarters. The company's gross profit margin has improved steadily from 40.42% in Q4 2022 to 43.32% in Q4 2023. This indicates that Allegion plc has been able to effectively manage its cost of goods sold and maintain a healthy level of profitability on its sales revenue.
The gradual increase in the gross profit margin implies that Allegion plc may have implemented cost-saving measures, negotiated better supplier terms, or optimized its pricing strategy. This upward trend suggests that the company is operating efficiently and effectively managing its production costs.
Overall, Allegion plc's improving gross profit margin is a positive indicator of the company's financial health and operational performance, reflecting its ability to generate profits from its core business activities.