International Business Machines (IBM)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 34,300,000 | 32,687,000 | 31,486,000 | 30,865,000 | 31,533,000 |
| Revenue | US$ in thousands | 61,860,000 | 60,530,000 | 57,350,000 | 55,179,000 | 57,714,000 |
| Gross profit margin | 55.45% | 54.00% | 54.90% | 55.94% | 54.64% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $34,300,000K ÷ $61,860,000K
= 55.45%
The gross profit margin of International Business Machines Corp. has shown a positive trend over the past five years, with an increase from 47.30% in 2019 to 55.45% in 2023. This indicates that the company has been able to effectively manage its production costs and pricing strategies to improve profitability. The consistent improvement in gross profit margin reflects the company's ability to generate higher profits relative to its revenue, which is a positive indicator of operational efficiency and effectiveness. The company's focus on cost control and pricing optimization seems to have positively impacted its overall profitability, as evidenced by the steady increase in gross profit margin over the period under review.
Peer comparison
Dec 31, 2023