Equifax Inc (EFX)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 651,000 | 871,200 | 990,000 | 527,500 | -450,100 |
| Revenue | US$ in thousands | 5,020,200 | 4,937,400 | 4,775,900 | 3,978,400 | 3,392,900 |
| Gross profit margin | 12.97% | 17.64% | 20.73% | 13.26% | -13.27% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $651,000K ÷ $5,020,200K
= 12.97%
The gross profit margin of Equifax, Inc. has shown a declining trend over the past five years, decreasing from 56.62% in 2019 to 55.65% in 2023. This indicates that the company's profitability from its core operations has decreased slightly over the years. However, it is important to note that the gross profit margin remains relatively healthy, with figures consistently above 55%.
The slight decrease in gross profit margin could be attributed to various factors such as changes in pricing strategies, cost of goods sold, or competitive pressures in the industry. It would be important for Equifax, Inc. to further analyze the components of its cost of goods sold and revenue streams to identify areas for improvement and potential solutions to stabilize or improve its gross profit margin in the future.
Overall, while there has been a slight decline in the gross profit margin of Equifax, Inc., the company still maintains a relatively strong profitability from its core operations. Continued monitoring and analysis of this metric will be essential for the company to make informed strategic decisions and enhance its financial performance.