Quanex Building Products (NX)
Gross profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 132,751 | 137,762 | 110,415 | 87,731 | 7,859 |
| Revenue | US$ in thousands | 1,130,580 | 1,221,500 | 1,072,150 | 851,573 | 893,841 |
| Gross profit margin | 11.74% | 11.28% | 10.30% | 10.30% | 0.88% |
October 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $132,751K ÷ $1,130,580K
= 11.74%
The gross profit margin is a crucial financial ratio that provides insight into a company's ability to generate profit from its core revenue-generating activities. Quanex Building Products Corp has exhibited a fluctuating trend in its gross profit margin over the past five years, as evidenced by the following figures:
- Oct 31, 2023: 24.55%
- Oct 31, 2022: 21.98%
- Oct 31, 2021: 22.44%
- Oct 31, 2020: 22.64%
- Oct 31, 2019: 22.31%
The gross profit margin represents the percentage of revenue that surpasses the cost of goods sold. Quanex Building Products Corp's gross profit margin has experienced an improvement in 2023 compared to 2022, indicating a better ability to control production costs or raise the selling price of its products. This higher margin could be attributed to factors such as enhanced operational efficiency, cost management, or potentially increased pricing power in its market segment.
Furthermore, the improvement in the gross profit margin in 2023 suggests that Quanex Building Products Corp may have successfully addressed any inefficiencies in its production process, resulting in a higher proportion of revenue being retained as gross profit.
The average gross profit margin over this five-year period is approximately 22.78%, pointing towards a relatively consistent performance in generating profit from its core business activities.
It is important to align this analysis of the gross profit margin with other financial metrics and qualitative information to obtain a comprehensive view of Quanex Building Products Corp's overall financial health and operational performance.
Peer comparison
Oct 31, 2023