PC Connection Inc (CNXN)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 511,736 | 526,177 | 464,579 | 418,807 | 451,310 |
| Revenue | US$ in thousands | 2,850,070 | 3,124,980 | 2,892,630 | 2,590,160 | 2,819,820 |
| Gross profit margin | 17.96% | 16.84% | 16.06% | 16.17% | 16.00% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $511,736K ÷ $2,850,070K
= 17.96%
The gross profit margin of PC Connection Inc has shown a slight increase over the past five years. In 2023, the gross profit margin improved to 17.96% from 16.84% in 2022. This indicates that the company was able to generate more gross profit for each dollar of revenue in 2023 compared to the previous year.
Although the gross profit margin fluctuated slightly in the preceding years, the overall trend has been positive, reflecting the company's ability to effectively manage its cost of goods sold and pricing strategies. The upward trend suggests improved efficiency in production and operations, which could lead to enhanced profitability and shareholder value in the long term.
Analyzing the gross profit margin allows investors and stakeholders to assess the company's pricing strategy, cost management, and overall financial performance. Continuous monitoring of this ratio can provide valuable insights into the company's competitive position and operational effectiveness in generating profits.
Peer comparison
Dec 31, 2023