Deluxe Corporation (DLX)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,162,680 | 1,205,890 | 1,137,930 | 1,060,010 | 1,195,780 |
| Revenue | US$ in thousands | 2,192,260 | 2,238,010 | 2,022,200 | 1,790,780 | 2,008,720 |
| Gross profit margin | 53.04% | 53.88% | 56.27% | 59.19% | 59.53% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,162,680K ÷ $2,192,260K
= 53.04%
The gross profit margin of Deluxe Corp. has shown a decreasing trend over the past five years, decreasing from 59.53% in 2019 to 53.04% in 2023. This indicates that the company's cost of goods sold relative to its revenue has been increasing, leading to a lower percentage of revenue retained as gross profit. The declining trend in gross profit margin may raise concerns about the company's ability to effectively manage its production costs and maintain profitability. It is important for Deluxe Corp. to explore ways to optimize its cost structure and enhance operational efficiencies to improve its gross profit margin in the future.