Graco Inc (GGG)

Gross profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Gross profit US$ in thousands 1,122,460 1,161,020 1,057,440 1,033,950 854,937
Revenue US$ in thousands 2,113,320 2,195,610 2,143,520 1,987,610 1,650,120
Gross profit margin 53.11% 52.88% 49.33% 52.02% 51.81%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,122,460K ÷ $2,113,320K
= 53.11%

The gross profit margin of Graco Inc has shown a fluctuating trend over the past five years. Starting at 51.81% on December 31, 2020, it slightly increased to 52.02% by December 31, 2021. However, in the following year, the margin declined to 49.33% as of December 31, 2022.

Thereafter, the company's gross profit margin saw a notable recovery, rising to 52.88% as of December 31, 2023, and further improving to 53.11% by December 31, 2024. This upward trajectory indicates an improvement in the efficiency of Graco's production processes and/or pricing strategies, resulting in a higher percentage of revenue retained as gross profit.

Overall, while there were fluctuations in the gross profit margin, the general trend shows an overall improvement over the five-year period, reflecting positively on Graco Inc's operational performance and profitability.