NewMarket Corporation (NEU)

Gross profit margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Gross profit (ttm) US$ in thousands 886,346 855,786 813,651 790,834 772,513 774,938 721,540 683,378 640,497 567,680 557,594 541,117 547,707 591,753 620,139 575,878 595,032 587,692 583,812 657,907
Revenue (ttm) US$ in thousands 2,786,558 2,775,261 2,717,464 2,692,366 2,698,419 2,737,628 2,766,527 2,805,036 2,764,799 2,658,807 2,584,965 2,452,047 2,356,110 2,307,324 2,197,986 2,018,129 2,010,931 2,017,595 2,060,543 2,213,096
Gross profit margin 31.81% 30.84% 29.94% 29.37% 28.63% 28.31% 26.08% 24.36% 23.17% 21.35% 21.57% 22.07% 23.25% 25.65% 28.21% 28.54% 29.59% 29.13% 28.33% 29.73%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $886,346K ÷ $2,786,558K
= 31.81%

NewMarket Corporation's gross profit margin has shown fluctuations over the period analyzed. The trend indicates that the gross profit margin started at 29.73% on March 31, 2020, decreased to a low of 21.35% on September 30, 2022, and then gradually started to improve. From December 31, 2022, the gross profit margin increased steadily to reach a peak of 31.81% on December 31, 2024.

Despite the fluctuations, it is essential to note that the gross profit margin generally improved over the period, with a significant recovery observed in the latter part of the timeline. This upward trend indicates that the company may have implemented strategic measures to enhance operational efficiency and optimize cost structures, leading to better profitability.

Analyzing the gross profit margin can provide insights into the company's ability to manage production costs and pricing strategies effectively. It is crucial for NewMarket Corporation to continue monitoring and improving its gross profit margin to ensure sustainable profitability and competitiveness in the market.