ITT Inc (ITT)

Gross profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Gross profit US$ in thousands 1,247,300 1,107,300 922,300 899,500 782,200
Revenue US$ in thousands 3,630,700 3,283,000 2,987,700 2,765,000 2,477,800
Gross profit margin 34.35% 33.73% 30.87% 32.53% 31.57%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,247,300K ÷ $3,630,700K
= 34.35%

The gross profit margin of ITT Inc has shown fluctuation over the past five years. It increased from 31.57% as of December 31, 2020, to 32.53% as of December 31, 2021, indicating an improvement in the company's ability to generate profits from its core business activities. However, in the following year, the gross profit margin declined to 30.87% as of December 31, 2022, which may raise concerns about the company's cost management or pricing strategies during that period.

There was a significant rebound in gross profit margin in the subsequent year, reaching 33.73% as of December 31, 2023, suggesting a successful implementation of measures to enhance profitability. This positive trend continued into the most recent year, with the gross profit margin further increasing to 34.35% as of December 31, 2024. This indicates that ITT Inc has been able to effectively control its production costs and possibly negotiate better pricing terms with suppliers, leading to improved profitability.

Overall, the trend in ITT Inc's gross profit margin demonstrates both periods of improvement and challenges, underscoring the importance of ongoing monitoring and management of costs and revenues in ensuring sustainable profitability in the future.