Archrock Inc (AROC)

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	475,768	435,184	387,605	343,433	310,302	279,243	245,790	220,433	207,592	197,392	195,502	195,846	204,780	209,053	233,155	193,731	105,497	126,030	134,835	197,753
Revenue (ttm)	US$ in thousands	1,142,169	1,036,877	972,925	921,312	884,635	850,029	813,492	785,951	753,160	724,464	705,631	683,916	685,067	688,377	699,129	720,039	768,969	841,112	878,250	896,466
Gross profit margin		41.65%	41.97%	39.84%	37.28%	35.08%	32.85%	30.21%	28.05%	27.56%	27.25%	27.71%	28.64%	29.89%	30.37%	33.35%	26.91%	13.72%	14.98%	15.35%	22.06%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $475,768K ÷ $1,142,169K
= 41.65%

The gross profit margin of Archrock Inc has shown fluctuating trends over the analyzed period from March 31, 2020, to December 31, 2024. The margin started at 22.06% in March 2020, declined to 13.72% by December 2020, and then displayed a consistent improvement reaching 41.65% by December 2024.

In the initial period, the company's profitability was relatively lower, indicating challenges in cost management or pricing strategies. However, from March 2021 onwards, there was a clear upward trend in the gross profit margin, suggesting enhanced operational efficiency, better cost control, or possibly an increase in sales prices.

The significant improvement in the gross profit margin over the years indicates a positive trajectory for Archrock Inc's financial performance and overall profitability. It is essential for investors and stakeholders to continue monitoring this ratio to assess the company's ability to generate profits from its core business activities.