Avantor Inc (AVTR)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	2,363,800	2,602,800	2,502,700	2,080,500	1,920,700
Revenue	US$ in thousands	6,967,200	7,512,400	7,386,100	6,393,600	6,040,300
Gross profit margin		33.93%	34.65%	33.88%	32.54%	31.80%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,363,800K ÷ $6,967,200K
= 33.93%

The gross profit margin of Avantor Inc has shown a generally increasing trend over the past five years, starting at 31.80% in 2019 and rising to 33.93% in 2023. This improvement indicates the company's ability to effectively control its production costs and generate profit from its core business activities. The slight fluctuations in the gross profit margin in some years, such as the decrease in 2020 followed by an increase in 2021 and 2022, suggest potential changes in the company's pricing strategies, cost management, or sales mix. Overall, the consistent growth in the gross profit margin reflects positively on Avantor's operational efficiency and competitiveness in the market.