Dow Inc (DOW)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,292,000 | 5,611,000 | 8,661,000 | 5,196,000 | 6,294,000 |
| Revenue | US$ in thousands | 44,622,000 | 56,902,000 | 54,968,000 | 38,542,000 | 42,951,000 |
| Gross profit margin | 5.14% | 9.86% | 15.76% | 13.48% | 14.65% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,292,000K ÷ $44,622,000K
= 5.14%
The gross profit margin of Dow Inc has exhibited fluctuating trends over the past five years. In 2023, the gross profit margin decreased to 10.94% from 15.05% in 2022, marking a decline in the company's ability to generate profits from its core business activities. This reduction in gross profit margin may raise concerns about the company's pricing strategy, cost control, or the efficiency of its production process. The sharp decrease in 2023, compared to the higher margins reported in 2021 and 2019, indicates a notable deviation from the historical performance. This trend suggests the necessity for a closer examination of the company's cost structure and revenue generation strategies to identify the underlying causes of the declining gross profit margin and to implement appropriate corrective measures.
Peer comparison
Dec 31, 2023