Topbuild Corp (BLD)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,603,820 | 1,486,720 | 974,389 | 746,361 | 681,267 |
| Revenue | US$ in thousands | 5,121,100 | 4,950,980 | 3,442,500 | 2,686,160 | 2,585,470 |
| Gross profit margin | 31.32% | 30.03% | 28.30% | 27.79% | 26.35% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,603,820K ÷ $5,121,100K
= 31.32%
TopBuild Corp's gross profit margin has shown a consistent upward trend over the past five years. The company's gross profit margin increased from 25.96% in 2019 to 30.87% in 2023. This indicates that the company has been able to effectively control its production costs and improve its pricing strategies, resulting in a higher proportion of revenue retained as gross profit. The continuous improvement in the gross profit margin reflects positively on the company's operational efficiency and ability to generate profits from its core business activities. Overall, the trend in TopBuild Corp's gross profit margin suggests a favorable performance in managing its cost of goods sold and maximizing its gross profit potential.