Innospec Inc (IOSP)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	591,100	586,700	434,900	342,700	466,200
Revenue	US$ in thousands	1,948,800	1,963,700	1,483,400	1,192,300	1,512,300
Gross profit margin		30.33%	29.88%	29.32%	28.74%	30.83%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $591,100K ÷ $1,948,800K
= 30.33%

The gross profit margin of Innospec Inc has exhibited a generally positive trend over the past five years. The company's gross profit margin has increased from 30.81% in 2019 to 30.33% in 2023. This indicates that the company has been able to effectively manage its direct production costs and maintain a relatively stable level of profitability in relation to its revenue.

The consistent improvement in the gross profit margin suggests that Innospec Inc has been successful in optimizing its cost structure and/or potentially increasing the prices of its products without significantly impacting sales volume. This trend is often seen as a positive indicator of operational efficiency and effective pricing strategies.

Overall, the rising trend in gross profit margin reflects positively on the company's ability to effectively control costs related to production and indicates a healthy level of profitability relative to its sales.