PC Connection Inc (CNXN)
Gross profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 511,736 | 506,305 | 511,043 | 520,167 | 526,177 | 528,868 | 512,939 | 492,365 | 464,579 | 446,403 | 433,536 | 406,209 | 418,807 | 426,061 | 437,094 | 465,081 | 451,310 | 441,999 | 423,580 | 414,061 |
| Revenue (ttm) | US$ in thousands | 2,850,161 | 2,886,154 | 2,968,760 | 3,063,722 | 3,124,985 | 3,192,747 | 3,168,423 | 3,044,075 | 2,892,633 | 2,768,107 | 2,669,491 | 2,515,332 | 2,590,290 | 2,631,231 | 2,707,889 | 2,898,963 | 2,820,232 | 2,813,125 | 2,742,333 | 2,707,827 |
| Gross profit margin | 17.95% | 17.54% | 17.21% | 16.98% | 16.84% | 16.56% | 16.19% | 16.17% | 16.06% | 16.13% | 16.24% | 16.15% | 16.17% | 16.19% | 16.14% | 16.04% | 16.00% | 15.71% | 15.45% | 15.29% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $511,736K ÷ $2,850,161K
= 17.95%
To analyze PC Connection, Inc.'s gross profit margin over the past eight quarters, we observe a gradual increasing trend in the margin. The gross profit margin has improved from 16.17% in Q1 2022 to 17.95% in Q4 2023. This indicates that PC Connection, Inc. has been more efficient in generating profits from its sales over time.
The company has shown consistent progress in managing its cost of goods sold while maintaining or increasing its revenue. This improvement suggests that PC Connection, Inc. is effectively controlling its production and operational costs, leading to a higher percentage of revenue retained as gross profit.
The steady increase in gross profit margin reflects well on the company's ability to effectively manage its production and distribution costs, potentially leading to enhanced profitability. Investors and stakeholders may view this positive trend as a sign of the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2023