Fortune Brands Innovations Inc. (FBIN)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 614,900 | 1,932,900 | 1,960,500 | 2,164,400 | 2,052,400 |
| Revenue | US$ in thousands | 4,626,200 | 4,723,000 | 4,801,100 | 3,621,300 | 5,764,600 |
| Gross profit margin | 13.29% | 40.93% | 40.83% | 59.77% | 35.60% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $614,900K ÷ $4,626,200K
= 13.29%
The gross profit margin of Fortune Brands Innovations Inc. has exhibited significant fluctuations over the past five years, with a noticeable decline from 2019 to 2020, followed by fluctuations in subsequent years. The gross profit margin plummeted from 59.77% in 2020 to 35.60% in 2019 before rebounding to 40.83% in 2021 and 40.93% in 2022, indicating some level of stabilization. However, the margin experienced another decline in 2023, dropping to 13.29%.
The substantial drop in gross profit margin from 2019 to 2020 suggests potential challenges in managing cost structures or pricing strategies during that period. The subsequent recovery in 2021 and 2022 might indicate successful efforts to address the issues that led to the decline. However, the sharp decrease in 2023 raises concerns about the company's ability to maintain consistent profitability, potentially indicating ongoing cost pressures or pricing challenges.
Overall, the fluctuating gross profit margin of Fortune Brands Innovations Inc. highlights the importance of closely monitoring factors affecting profitability, such as cost control measures, pricing strategies, and operational efficiency, to ensure sustainable and competitive performance in the market.
Peer comparison
Dec 31, 2023