Deluxe Corporation (DLX)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,126,450 | 1,162,680 | 1,205,900 | 1,137,900 | 1,060,000 |
| Revenue | US$ in thousands | 2,121,760 | 2,192,260 | 2,238,000 | 2,022,200 | 1,790,800 |
| Gross profit margin | 53.09% | 53.04% | 53.88% | 56.27% | 59.19% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,126,450K ÷ $2,121,760K
= 53.09%
Deluxe Corporation's gross profit margin has shown a gradual decline over the past five years. Starting at 59.19% on December 31, 2020, the margin decreased to 56.27% by December 31, 2021, and continued to decline to 53.88% by December 31, 2022. The trend persisted with a slight decrease to 53.04% by December 31, 2023, before experiencing a marginal uptick to 53.09% by December 31, 2024.
The declining trend in gross profit margin may indicate challenges in maintaining profitability on the sale of goods or services, possibly due to increasing costs of production or pricing pressures from competitors. It is essential for Deluxe Corporation to closely monitor and address factors impacting their gross profit margin to ensure sustainable profitability and financial health.