Graco Inc (GGG)

Gross profit margin

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 Mar 31, 2020
Gross profit (ttm) US$ in thousands 1,122,461 1,143,123 1,151,517 1,142,078 1,161,021 1,133,895 1,110,459 1,088,104 1,057,439 1,059,180 1,046,326 1,041,090 1,033,949 1,004,216 984,935 903,640 854,937 819,494 797,920 842,345
Revenue (ttm) US$ in thousands 2,113,316 2,131,287 2,151,747 2,158,148 2,195,605 2,184,007 2,189,979 2,178,882 2,143,521 2,128,095 2,069,147 2,027,764 1,987,608 1,918,329 1,870,949 1,730,677 1,650,115 1,592,067 1,553,306 1,614,742
Gross profit margin 53.11% 53.64% 53.52% 52.92% 52.88% 51.92% 50.71% 49.94% 49.33% 49.77% 50.57% 51.34% 52.02% 52.35% 52.64% 52.21% 51.81% 51.47% 51.37% 52.17%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,122,461K ÷ $2,113,316K
= 53.11%

Graco Inc's gross profit margin has shown some fluctuations over the past few years, based on the provided data. The gross profit margin, which represents the percentage of revenue that exceeds the cost of goods sold, is an important indicator of a company's profitability and efficiency in managing production costs.

From March 2020 to December 2020, the gross profit margin ranged between 51.37% and 52.21%, with a slight increasing trend observed during this period. However, starting from June 2021, there was a notable improvement in the gross profit margin, reaching above 52% and peaking at 53.64% by September 2024. This indicates that Graco Inc was able to effectively control its production costs and generate higher profits from its sales during this period.

However, there was a decline in the gross profit margin from June 2022 to March 2023, dropping from 50.57% to 49.94%. This could be attributed to factors such as increased production costs, pricing pressures, or changes in sales mix.

Overall, despite some fluctuations, Graco Inc's gross profit margin demonstrates a general upward trend from 2020 to 2024, showcasing the company's ability to maintain healthy profitability levels and efficiently manage its cost structure over time.