DXC Technology Co (DXC)

Gross profit margin

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Gross profit	US$ in thousands	449,000	-1,186,000	1,143,000	-1,655,000	-6,025,000
Revenue	US$ in thousands	13,667,000	14,430,000	16,265,000	17,729,000	19,577,000
Gross profit margin		3.29%	-8.22%	7.03%	-9.33%	-30.78%

March 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $449,000K ÷ $13,667,000K
= 3.29%

The gross profit margin of DXC Technology Co has fluctuated significantly over the past five years. In 2024, the gross profit margin stood at 3.29%, indicating that for every dollar of revenue generated, the company retained $0.0329 as gross profit after accounting for the cost of goods sold. This represents an improvement compared to the negative gross profit margins in 2023 and 2021, where the company experienced challenges in generating profits from its core operations.

The gross profit margin of 7.03% in 2022 marked a positive trend, suggesting improved cost management or pricing strategies that resulted in a higher proportion of revenue translating into gross profits. However, it is important to note the significant decrease in the gross profit margin from 2022 to 2023, indicating potential issues in maintaining profitability levels year-over-year.

The negative gross profit margins in 2021 and 2023 raise concerns about the company's ability to effectively control costs or generate sufficient revenue to cover production expenses. The lowest gross profit margin of -30.78% in 2020 highlights a particularly challenging period for the company, where the cost of goods sold exceeded the revenue generated, leading to substantial losses at the gross profit level.

Overall, the fluctuating gross profit margins of DXC Technology Co over the past five years suggest a need for the company to focus on enhancing operational efficiencies, cost management, and revenue generation strategies to ensure sustainable profitability in the future.