Howmet Aerospace Inc (HWM)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,009,000 | 728,000 | 335,000 | 250,000 | 218,000 |
| Revenue | US$ in thousands | 6,422,000 | 5,433,000 | 4,565,000 | 4,881,000 | 13,875,000 |
| Gross profit margin | 15.71% | 13.40% | 7.34% | 5.12% | 1.57% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,009,000K ÷ $6,422,000K
= 15.71%
The gross profit margin of Howmet Aerospace Inc has shown a generally increasing trend over the past five years, indicating improved efficiency in its cost management and pricing strategies. The company's gross profit margin increased from 20.89% in 2019 to 28.12% in 2023. This steady improvement suggests that the company has been able to effectively control its direct production costs and maintain a strong pricing strategy to generate higher gross profits relative to its revenues. Overall, the increasing trend in gross profit margin reflects positively on Howmet Aerospace's operational effectiveness and financial performance over the analyzed period.
Peer comparison
Dec 31, 2023