Deere & Company (DE)
Gross profit margin
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 45,962,000 | 56,076,000 | 47,894,000 | 40,455,000 | 7,595,000 |
| Revenue | US$ in thousands | 51,716,000 | 61,251,000 | 52,577,000 | 44,024,000 | 35,540,000 |
| Gross profit margin | 88.87% | 91.55% | 91.09% | 91.89% | 21.37% |
October 27, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $45,962,000K ÷ $51,716,000K
= 88.87%
The gross profit margin of Deere & Company has shown significant fluctuations over the past five years. In fiscal year 2020, the gross profit margin was relatively low at 21.37%, indicating that the company's cost of goods sold was high relative to its revenues. However, in the subsequent years, the gross profit margin improved significantly, reaching 91.89% in fiscal year 2021 and remaining above 90% in the following years.
These improvements suggest that Deere & Company was able to effectively manage its production costs and optimize its pricing strategies to generate higher margins on its products. The consistent high gross profit margins in the later years indicate the company's ability to control its costs efficiently and maintain healthy profitability levels.
Overall, the trend in Deere & Company's gross profit margin reflects a successful management of operating costs and pricing strategies, resulting in improved profitability and financial performance over the years.
Peer comparison
Oct 27, 2024