General Motors Company (GM)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 169,348,000 | 155,643,000 | 17,545,000 | 17,060,000 | 17,206,000 |
| Revenue | US$ in thousands | 171,842,000 | 156,735,000 | 127,004,000 | 122,485,000 | 137,237,000 |
| Gross profit margin | 98.55% | 99.30% | 13.81% | 13.93% | 12.54% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $169,348,000K ÷ $171,842,000K
= 98.55%
The gross profit margin of General Motors Company has exhibited a declining trend over the past five years. The margin stood at 19.37% in 2019, followed by a slight decrease to 20.37% in 2020. However, there was a more significant drop to 20.83% in 2021, and a further decline to 19.04% in 2022. The trend continued with a decrease to 17.76% in 2023.
This downward trajectory raises concerns about the company's ability to efficiently control its cost of goods sold and maintain profitability on sales. It is important for General Motors to assess and address the factors contributing to this decline in order to improve its gross profit margin and overall financial performance.
Peer comparison
Dec 31, 2023