Kadant Inc (KAI)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 153,616 | 152,715 | 133,368 | 97,475 | 277,306 |
| Revenue | US$ in thousands | 1,050,980 | 950,662 | 896,492 | 782,025 | 627,794 |
| Gross profit margin | 14.62% | 16.06% | 14.88% | 12.46% | 44.17% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $153,616K ÷ $1,050,980K
= 14.62%
Based on the provided data, Kadant Inc's gross profit margin has shown some fluctuations over the five-year period from December 31, 2020, to December 31, 2024.
The gross profit margin decreased significantly from 44.17% in 2020 to 12.46% in 2021, indicating a notable decline in the company's ability to generate profits from its revenue after accounting for the cost of goods sold. This substantial drop may raise concerns about the efficiency of Kadant Inc's operations or potential pricing pressures.
However, there was a slight improvement in the gross profit margin in the following years, reaching 14.88% in 2022, 16.06% in 2023, and then declining slightly to 14.62% in 2024. While the increase in 2022 and 2023 shows some recovery, the subsequent decline in 2024 suggests potential challenges in maintaining profitability or controlling costs.
Overall, the trend in Kadant Inc's gross profit margin indicates variability in the company's ability to generate profits from its core business activities. Further analysis of the cost structure, pricing strategies, and efficiency measures may help in understanding the factors influencing these fluctuations in the gross profit margin.
Peer comparison
Dec 31, 2024