Avantor Inc (AVTR)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	2,279,300	2,363,800	2,602,800	2,502,700	2,080,500
Revenue	US$ in thousands	6,783,600	6,967,200	7,512,400	7,386,100	6,393,600
Gross profit margin		33.60%	33.93%	34.65%	33.88%	32.54%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,279,300K ÷ $6,783,600K
= 33.60%

The gross profit margin of Avantor Inc has shown a gradual increase from 32.54% in December 2020 to 33.60% in December 2024. This indicates that the company has been able to effectively manage its cost of goods sold relative to its revenue over the years, leading to improved profitability at the gross profit level. Although there was a slight fluctuation in 2023, overall, the trend reflects the company's ability to maintain healthy margins on its core business operations. A higher gross profit margin suggests that Avantor is effectively controlling its production and direct costs, which is essential for sustaining profitability in the long term.