ESAB Corp (ESAB)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 1,021,948 | 1,006,476 | 1,002,400 | 1,003,738 | 1,003,877 | 985,415 | 945,039 | 908,588 | 885,530 | 873,943 | 871,600 | 862,519 | 837,983 |
| Revenue (ttm) | US$ in thousands | 2,740,803 | 2,759,395 | 2,767,141 | 2,780,510 | 2,774,766 | 2,749,545 | 2,688,814 | 2,629,569 | 2,593,480 | 2,553,568 | 2,539,271 | 2,507,898 | 2,428,115 |
| Gross profit margin | 37.29% | 36.47% | 36.23% | 36.10% | 36.18% | 35.84% | 35.15% | 34.55% | 34.14% | 34.22% | 34.32% | 34.39% | 34.51% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,021,948K ÷ $2,740,803K
= 37.29%
ESAB Corp's gross profit margin has shown a consistent improvement trend over the period from December 31, 2021, to December 31, 2024. The gross profit margin increased from 34.51% in December 2021 to 37.29% by December 31, 2024. This indicates that ESAB Corp has been able to effectively manage its production costs and maintain a strong pricing strategy to enhance its profitability.
The gradual increase in gross profit margin suggests that ESAB Corp has been successful in optimizing its production processes, negotiating better terms with suppliers, or increasing selling prices without a corresponding increase in costs. This improvement in gross profit margin reflects positively on the company's operational efficiency and ability to generate more profit from its core activities.
The upward trend in gross profit margin is a positive indication of ESAB Corp's financial health and competitiveness in its industry. It also suggests that the company may be able to withstand fluctuations in costs or pricing pressures while maintaining its profitability. Overall, the improving trend in gross profit margin reflects well on ESAB Corp's financial performance and management effectiveness.
Peer comparison
Dec 31, 2024