Allegion PLC (ALLE)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 1,668,500 | 1,637,100 | 1,608,300 | 1,581,900 | 1,581,500 | 1,546,900 | 1,511,600 | 1,424,700 | 1,322,400 | 1,258,200 | 1,190,700 | 1,196,200 | 1,204,900 | 1,238,300 | 1,257,000 | 1,183,100 | 1,178,800 | 1,178,100 | 1,194,400 | 1,268,500 |
| Revenue (ttm) | US$ in thousands | 3,772,200 | 3,724,000 | 3,674,800 | 3,621,700 | 3,650,800 | 3,614,900 | 3,610,700 | 3,471,300 | 3,271,900 | 3,119,600 | 2,922,900 | 2,896,700 | 2,867,400 | 2,885,500 | 2,896,900 | 2,739,500 | 2,719,900 | 2,712,100 | 2,732,000 | 2,873,700 |
| Gross profit margin | 44.23% | 43.96% | 43.77% | 43.68% | 43.32% | 42.79% | 41.86% | 41.04% | 40.42% | 40.33% | 40.74% | 41.30% | 42.02% | 42.91% | 43.39% | 43.19% | 43.34% | 43.44% | 43.72% | 44.14% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,668,500K ÷ $3,772,200K
= 44.23%
Allegion PLC's gross profit margin has shown fluctuations over the past five years, ranging from a low of 40.33% on September 30, 2022, to a high of 44.23% on December 31, 2024. The trend in the gross profit margin demonstrates a slight decline initially, reaching a low of 40.33% on September 30, 2022, before gradually increasing and peaking at 44.23% on December 31, 2024.
The gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold, reflecting the company's ability to generate profits from its core operations. A higher gross profit margin is generally preferred as it implies that the company is efficiently managing its production costs and pricing its products effectively.
Allegion PLC's management should monitor the gross profit margin closely to ensure it remains within acceptable levels and takes necessary actions to improve operational efficiency if necessary. Investors and stakeholders may also consider changes in the gross profit margin as a key indicator of the company's financial health and performance.