Element Solutions Inc (ESI)
Gross profit margin
| Mar 31, 2025 | 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 1,041,200 | 1,035,700 | 1,000,000 | 974,400 | 935,700 | 918,500 | 916,200 | 896,200 | 917,500 | 952,700 | 971,500 | 994,100 | 982,800 | 960,800 | 946,700 | 905,700 | 829,700 | 786,000 | 754,600 | 756,800 |
| Revenue (ttm) | US$ in thousands | 2,475,600 | 2,456,900 | 2,406,100 | 2,360,400 | 2,333,800 | 2,333,200 | 2,333,600 | 2,352,800 | 2,443,600 | 2,549,400 | 2,622,500 | 2,620,200 | 2,529,900 | 2,399,800 | 2,289,500 | 2,150,800 | 1,951,200 | 1,853,700 | 1,771,800 | 1,759,000 |
| Gross profit margin | 42.06% | 42.15% | 41.56% | 41.28% | 40.09% | 39.37% | 39.26% | 38.09% | 37.55% | 37.37% | 37.04% | 37.94% | 38.85% | 40.04% | 41.35% | 42.11% | 42.52% | 42.40% | 42.59% | 43.02% |
March 31, 2025 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,041,200K ÷ $2,475,600K
= 42.06%
The gross profit margin of Element Solutions Inc has demonstrated a gradual decline from June 30, 2020, through the first quarter of 2022, decreasing from approximately 43.02% to a low of around 37.94%. During this period, the margin exhibited a declining trend, reflecting potential issues related to cost management, pricing strategies, or competitive pressures impacting gross profitability.
Starting from the second quarter of 2022, the gross profit margin stabilized somewhat, fluctuating slightly above 37%, and remained relatively steady through the first quarter of 2023, with marginal increases observed thereafter. Notably, from mid-2023 onward, there has been an upward trend in the gross profit margin, reaching approximately 42.06% by the first quarter of 2025. This recovery indicates improvements in either cost efficiencies, pricing power, or product mix that favorably impacted gross profitability.
Overall, the gross profit margin experienced a significant decline over the initial years, hitting a trough around late 2022, followed by a consistent upward trajectory from mid-2023 into 2025. This pattern suggests that the company might have addressed prior cost or pricing challenges and has begun to restore or enhance its gross margin levels, reflecting a potential improvement in operational efficiency or strategic pricing adjustments.
Peer comparison
Mar 31, 2025