Graham Holdings Co (GHC)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	4,373,700	3,889,210	3,212,220	3,024,740	3,032,450
Revenue	US$ in thousands	4,394,680	3,881,520	3,193,800	3,072,330	2,932,100
Gross profit margin		99.52%	100.20%	100.58%	98.45%	103.42%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $4,373,700K ÷ $4,394,680K
= 99.52%

Graham Holdings Co.'s gross profit margin has shown a declining trend over the past five years, dropping from 31.00% in 2019 to 29.72% in 2023. This indicates that the company's ability to generate profit from its core business activities has weakened slightly over the period. The decrease in the gross profit margin may be attributed to various factors such as increased costs of goods sold, pricing pressures, or changes in revenue mix. It is essential for the company to closely monitor and manage its cost structure and pricing strategies to improve its profitability and strengthen its competitive position in the market.