Arch Resources Inc (ARCH)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 546,454 | 1,109,410 | 367,130 | -330,140 | 242,870 |
| Revenue | US$ in thousands | 3,129,900 | 3,689,710 | 2,121,840 | 1,453,160 | 2,275,990 |
| Gross profit margin | 17.46% | 30.07% | 17.30% | -22.72% | 10.67% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $546,454K ÷ $3,129,900K
= 17.46%
The gross profit margin of Arch Resources Inc has fluctuated significantly over the past five years. In 2023, the company's gross profit margin stood at 17.46%, showing a decrease from the previous year's margin of 30.07%. This decline indicates a decrease in the percentage of revenue that remains after deducting the cost of goods sold.
The gross profit margin in 2021 was 17.30%, which is relatively consistent with the most recent figure. However, in 2020, the company experienced a negative gross profit margin of -22.72%, suggesting that the cost of goods sold exceeded the revenue generated from sales during that period. This could be a concerning sign for the company's operational efficiency in managing production costs.
On a positive note, the gross profit margin rebounded in 2019, reaching 10.67%, indicating an improvement in the company's ability to generate profit from its core operations compared to the previous year.
Overall, the fluctuation in Arch Resources Inc's gross profit margin over the years indicates varying levels of efficiency in controlling production costs and managing pricing strategies. Further analysis of the underlying factors influencing these fluctuations would be necessary to provide a more in-depth assessment of the company's financial performance.
Peer comparison
Dec 31, 2023