Mercer International Inc (MERC)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | -284,014 | 318,664 | 244,959 | 130,596 | 158,230 |
| Revenue | US$ in thousands | 1,902,410 | 2,225,980 | 1,713,880 | 1,327,140 | 1,535,420 |
| Gross profit margin | -14.93% | 14.32% | 14.29% | 9.84% | 10.31% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $-284,014K ÷ $1,902,410K
= -14.93%
Mercer International Inc.'s gross profit margin has shown a significant fluctuation over the past five years, ranging from a low of 7.04% in 2023 to a high of 30.92% in 2021. The downward trend from 2021 to 2023 indicates a decrease in the company's ability to generate profit from its production activities relative to sales revenue. This can be concerning as it may suggest challenges in managing production costs or pricing strategies. Further analysis of the factors impacting the cost of goods sold and sales revenue would be necessary to understand the drivers behind these fluctuations and assess the overall profitability and efficiency of Mercer International Inc.'s operations.