Chesapeake Energy Corp (CHK)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 8,573,000 | 11,579,000 | 5,429,000 | -3,598,000 | 8,219,000 |
| Revenue | US$ in thousands | 8,721,000 | 11,743,000 | 5,549,000 | 5,240,000 | 8,532,000 |
| Gross profit margin | 98.30% | 98.60% | 97.84% | -68.66% | 96.33% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $8,573,000K ÷ $8,721,000K
= 98.30%
The gross profit margin of Chesapeake Energy Corp has shown fluctuations over the past five years. In 2023 and 2022, the company achieved high gross profit margins of 98.30% and 98.60%, indicating efficient cost control and strong pricing power. However, in 2021, there was a slight dip to 97.84%, suggesting potential cost pressures or pricing adjustments during that period.
The significant decrease in gross profit margin to -68.66% in 2020 is concerning and may be attributed to various factors such as steep declines in revenue, increased operational costs, or impairment charges. This negative margin indicates that the company incurred higher costs of goods sold than the revenue generated during that year, signifying a potential loss-making scenario.
The improvement to 96.33% in 2019 reflects a recovery in profitability, showcasing the company's ability to enhance operational efficiency and positively impact its pricing strategies.
Overall, while the recent years have demonstrated strong gross profit margins for Chesapeake Energy Corp, it is essential for the company to maintain a consistent focus on cost management and revenue generation to sustain profitability in the future.
Peer comparison
Dec 31, 2023