AdvanSix Inc (ASIX)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	152,936	165,088	314,479	274,122	133,748
Revenue	US$ in thousands	1,517,560	1,533,600	1,945,640	1,684,620	1,157,920
Gross profit margin		10.08%	10.76%	16.16%	16.27%	11.55%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $152,936K ÷ $1,517,560K
= 10.08%

AdvanSix Inc's gross profit margin has shown variability over the past five years. In December 2020, the gross profit margin stood at 11.55%, indicating that the company retained $0.1155 in profit for every dollar of revenue after deducting the cost of goods sold. This figure improved in the following year, reaching 16.27% by December 2021, suggesting increased efficiency in managing production costs.

However, in December 2022, the gross profit margin slightly decreased to 16.16%, indicating a small dip in profitability. The trend continued in December 2023, with the margin falling to 10.76%, likely due to various factors such as increased production costs or pricing pressures.

By December 2024, AdvanSix Inc's gross profit margin further declined to 10.08%, indicating a continued challenge in maintaining profitability levels. It is essential for the company to closely monitor and address the factors affecting its gross profit margin to sustain its financial health and competitiveness in the market.