Clean Harbors Inc (CLH)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 859,332 | 901,376 | 933,876 | 611,025 | 502,949 |
| Revenue | US$ in thousands | 5,754,620 | 5,395,620 | 5,168,640 | 3,803,030 | 3,139,310 |
| Gross profit margin | 14.93% | 16.71% | 18.07% | 16.07% | 16.02% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $859,332K ÷ $5,754,620K
= 14.93%
The gross profit margin of Clean Harbors Inc has shown fluctuation over the past five years, ranging from a low of 14.93% on December 31, 2024, to a high of 18.07% on December 31, 2022. Despite this variance, the company has generally maintained a relatively stable gross profit margin, with the latest reported figure for December 31, 2023, at 16.71%.
The increase in the gross profit margin from 16.02% in December 31, 2020, to 16.07% in December 31, 2021, followed by a more significant jump to 18.07% in December 31, 2022, indicates potential improvements in the cost management and pricing strategies of Clean Harbors during that period. However, the subsequent decrease to 16.71% in December 31, 2023, and further decline to 14.93% in December 31, 2024, may suggest challenges or shifts in the company's operations or market conditions impacting profitability.
Overall, a gross profit margin provides insights into a company's ability to generate profit from its core operations after accounting for costs directly related to production. Analyzing trends in this metric can help assess the efficiency of Clean Harbors Inc in managing production costs and pricing strategies relative to its revenue, offering valuable perspectives on the company's financial performance and potential areas for improvement.