Dril-Quip Inc (DRQ)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	115,557	96,135	80,589	95,275	119,799
Revenue	US$ in thousands	424,060	361,924	322,945	364,973	414,806
Gross profit margin		27.25%	26.56%	24.95%	26.10%	28.88%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $115,557K ÷ $424,060K
= 27.25%

Dril-Quip, Inc.'s gross profit margin has shown some fluctuations in recent years. The company's gross profit margin increased to 27.25% in 2023 from 26.55% in 2022. This suggests that the company was able to improve its profitability from the previous year.

However, when compared to 2021, where the gross profit margin was at 24.95%, the increase in 2023 indicates a positive trend in the company's ability to generate profits from its core operations.

Looking back further, in 2020 and 2019, the gross profit margin was 26.10% and 28.88%, respectively. The decrease in gross profit margin from 2019 to 2023 could indicate either increased costs of goods sold or pricing pressures in the industry.

Overall, while the gross profit margin for Dril-Quip, Inc. has shown fluctuations, the recent increase in 2023 is a positive sign of improving profitability. Further analysis of the company's cost structure and revenue generation may provide more insights into the factors driving these changes in the gross profit margin.