NewMarket Corporation (NEU)

Gross profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	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	629,869	628,267	606,423	581,449
Revenue (ttm)	US$ in thousands	2,657,060	2,693,036	2,722,787	2,764,467	2,718,052	2,610,742	2,535,924	2,401,221	2,315,892	2,282,767	2,176,308	1,998,315	1,990,356	1,997,020	2,039,447	2,191,264	2,167,555	2,171,422	2,177,951	2,215,662
Gross profit margin		29.07%	28.78%	26.50%	24.72%	23.56%	21.74%	21.99%	22.54%	23.65%	25.92%	28.50%	28.82%	29.90%	29.43%	28.63%	30.02%	29.06%	28.93%	27.84%	26.24%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $772,513K ÷ $2,657,060K
= 29.07%

The gross profit margin of NewMarket Corp. has shown a general increasing trend over the past eight quarters, reaching a peak of 28.63% in Q4 2023. This indicates that the company has been able to effectively control its cost of goods sold and improve its pricing strategies to enhance profitability. The substantial improvement from 23.17% in Q4 2022 to 28.63% in Q4 2023 reflects positively on the company's operational efficiency and ability to generate profits from its core business activities. The consistent growth in gross profit margin suggests that NewMarket Corp. has been successful in managing its production and distribution costs, thereby boosting its overall profitability.