Benchmark Electronics Inc (BHE)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	270,024	271,070	255,235	205,901	175,048
Revenue	US$ in thousands	2,656,100	2,838,980	2,886,330	2,255,320	2,053,130
Gross profit margin		10.17%	9.55%	8.84%	9.13%	8.53%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $270,024K ÷ $2,656,100K
= 10.17%

Based on the provided data for Benchmark Electronics Inc, the gross profit margin has shown a positive trend over the five-year period from December 31, 2020, to December 31, 2024. The gross profit margin has improved from 8.53% in 2020 to 10.17% in 2024, indicating an increasing efficiency in managing production costs and generating profits from sales. The company has successfully enhanced its pricing strategies, streamlined operations, or improved product mix to achieve higher margins.

The consistent growth in gross profit margin reflects the company's efforts in optimizing its cost structure and enhancing operational efficiency. This improvement suggests that Benchmark Electronics Inc may have successfully controlled its production costs, negotiated better terms with suppliers, or increased the selling price of its products.

Overall, the increasing gross profit margin is a positive indicator of Benchmark Electronics Inc's financial performance, demonstrating its ability to generate more profits from its core business operations over the years. However, it is important for investors and stakeholders to monitor this metric alongside other financial ratios to gain a comprehensive understanding of the company's overall profitability and financial health.