Graham Holdings Co (GHC)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	1,466,370	1,311,940	1,266,780	1,071,450	977,015
Revenue	US$ in thousands	4,790,900	4,414,880	3,924,490	3,185,970	2,889,120
Gross profit margin		30.61%	29.72%	32.28%	33.63%	33.82%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,466,370K ÷ $4,790,900K
= 30.61%

The gross profit margin of Graham Holdings Co has experienced some fluctuations over the years based on the provided data.

As of December 31, 2020, the gross profit margin stood at 33.82%, indicating that the company retained 33.82% of its revenue after accounting for the cost of goods sold.

By December 31, 2021, the gross profit margin slightly decreased to 33.63%, suggesting a minor decline in the company's profitability compared to the previous year.

However, the gross profit margin notably dropped to 32.28% by December 31, 2022, reflecting a more significant decrease in profitability.

The trend continued as of December 31, 2023, with the gross profit margin falling to 29.72%, indicating a further decline in the company's ability to generate profits from its core operations.

There was a slight recovery by December 31, 2024, when the gross profit margin improved to 30.61%, although it remained below the levels seen in the earlier years.

Overall, the decreasing trend in the gross profit margin of Graham Holdings Co from 2020 to 2024 may raise concerns about the company's operational efficiency and pricing strategies, warranting a closer examination of its cost structures and revenue generation capabilities.