Clearwater Paper Corporation (CLW)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 175,100 | 112,500 | 66,900 | 174,700 | 37,100 |
| Revenue | US$ in thousands | 2,082,800 | 2,080,100 | 1,772,600 | 1,868,600 | 1,761,500 |
| Gross profit margin | 8.41% | 5.41% | 3.77% | 9.35% | 2.11% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $175,100K ÷ $2,082,800K
= 8.41%
The gross profit margin of Clearwater Paper Corp has shown fluctuations over the past five years, ranging from 9.34% in 2019 to 15.88% in 2023.
The significant increase in 2023 compared to the prior years indicates an improvement in the company's ability to generate profits from its core business operations while efficiently managing production costs. This could be the result of various factors such as effective cost control measures, pricing strategies, or increased sales volume.
On the other hand, the lower gross profit margins in 2021 and 2022 suggest challenges in maintaining profitability, possibly due to factors like rising input costs, pricing pressures, or operational inefficiencies.
Overall, the trend in Clearwater Paper Corp's gross profit margin reflects the company's performance in effectively managing its production costs and generating profits from core operations. Monitoring this metric over time can provide valuable insights into the company's operational efficiency and profitability.