Owens Corning Inc (OC)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,683,000 | 2,616,000 | 2,217,000 | 1,610,000 | 1,609,000 |
| Revenue | US$ in thousands | 9,599,000 | 9,618,000 | 8,364,000 | 6,929,000 | 7,160,000 |
| Gross profit margin | 27.95% | 27.20% | 26.51% | 23.24% | 22.47% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,683,000K ÷ $9,599,000K
= 27.95%
Owens Corning's gross profit margin has shown a generally increasing trend over the past five years, indicating an improvement in the company's ability to generate profit from its core operations. The company achieved a gross profit margin of 27.73% at the end of 2023, compared to 26.80% in 2022, 26.09% in 2021, 22.82% in 2020, and 22.47% in 2019. This upward trajectory suggests that Owens Corning has been able to effectively manage its direct costs associated with producing goods and services, resulting in a higher percentage of revenue retained as gross profit. The consistent growth in gross profit margin is a positive sign of operational efficiency and profitability for the company.