Black Hills Corporation (BKH)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	1,786,300	2,259,700	2,480,580	1,884,780	1,636,480
Revenue	US$ in thousands	2,127,700	2,331,300	2,551,800	1,949,100	1,696,940
Gross profit margin		83.95%	96.93%	97.21%	96.70%	96.44%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,786,300K ÷ $2,127,700K
= 83.95%

The gross profit margin of Black Hills Corporation has shown a generally positive trend over the years, reflecting the company's ability to efficiently manage its production costs and generate profit from its core business activities. From December 31, 2020, to December 31, 2022, the gross profit margin increased steadily from 96.44% to 97.21%, indicating consistent profitability and effective cost control measures.

However, there was a slight downturn in the gross profit margin by the end of December 31, 2023, dropping to 96.93%. This could be attributed to various factors such as changes in input costs or pricing strategies.

The most noticeable change occurred by December 31, 2024, with the gross profit margin decreasing significantly to 83.95%. This sudden decline may raise concerns about the company's efficiency in generating profits relative to its production costs. Further analysis would be required to determine the specific reasons behind this marked decrease.

In summary, while Black Hills Corporation has generally maintained high gross profit margins over the years, the recent substantial drop in 2024 warrants a closer examination of the company's operational performance and profitability drivers.