Element Solutions Inc (ESI)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,035,700 | 918,500 | 952,700 | 960,800 | 786,000 |
| Revenue | US$ in thousands | 2,456,900 | 2,333,200 | 2,549,400 | 2,399,800 | 1,853,700 |
| Gross profit margin | 42.15% | 39.37% | 37.37% | 40.04% | 42.40% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,035,700K ÷ $2,456,900K
= 42.15%
The gross profit margin of Element Solutions Inc. demonstrates fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the gross profit margin was 42.40%. This figure decreased slightly in 2021 to 40.04%, indicating a modest narrowing of profitability on each dollar of sales. The downward trend continued into 2022, with the margin declining further to 37.37%, suggesting increased cost of goods sold or a decrease in selling prices relative to costs during that period.
However, beginning in 2023, the gross profit margin experienced an improvement, rising to 39.37%, which could reflect improvements in cost management, pricing strategies, or product mix adjustments. This upward movement continued into 2024, with the margin reaching 42.15%, surpassing the levels seen at the start of the analyzed period and indicating a recovery or strengthening in the company's gross profitability.
Overall, the gross profit margin exhibits a pattern of initial decline followed by a recovery, culminating in the highest level observed in 2024. This trajectory may suggest operational adjustments or shifts in market conditions that affected cost structures or sales pricing strategies over these years.
Peer comparison
Dec 31, 2024