GE Aerospace (GE)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	33,577,000	57,663,000	61,681,000	61,860,000	3,231,000
Revenue	US$ in thousands	38,702,000	35,348,000	58,100,000	74,196,000	75,833,000
Gross profit margin		86.76%	163.13%	106.16%	83.37%	4.26%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $33,577,000K ÷ $38,702,000K
= 86.76%

Based on the data provided for GE Aerospace's gross profit margin from December 31, 2020, to December 31, 2024, there are significant fluctuations in the margin over the period.

In December 31, 2020, the gross profit margin was notably low at 4.26%, indicating that the company's cost of goods sold was relatively high compared to its revenue. However, there was a substantial improvement in the gross profit margin in the subsequent years.

By December 31, 2021, the gross profit margin surged to 83.37%, signifying a drastic increase in profitability as GE Aerospace managed to effectively control its production costs and enhance its revenue generation. This positive trend continued into December 31, 2022, with a further boost in the gross profit margin to 106.16%, demonstrating the company's improved operational efficiency and pricing strategies.

In December 31, 2023, the gross profit margin reached its peak at 163.13%, indicating a remarkable level of profitability achieved by GE Aerospace. This exceptional performance suggests that the company effectively managed its production costs, pricing, and sales strategies during this period.

However, by December 31, 2024, the gross profit margin decreased to 86.76%, showing a slight decline compared to the previous year. This reduction may indicate potential challenges or changes in the company's operations, pricing, or cost structures that impacted its profitability.

In summary, GE Aerospace experienced significant fluctuations in its gross profit margin from 2020 to 2024, with notable improvements in profitability over the years, albeit with a slight decline in the final year. The company's ability to maintain a high gross profit margin is essential for sustaining its financial health and competitiveness in the aerospace industry.