Pilgrims Pride Corp (PPC)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,118,400 | 1,811,800 | 1,365,830 | 838,196 | 1,070,390 |
| Revenue | US$ in thousands | 17,112,600 | 17,295,900 | 14,639,400 | 11,996,600 | 11,295,500 |
| Gross profit margin | 6.54% | 10.48% | 9.33% | 6.99% | 9.48% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,118,400K ÷ $17,112,600K
= 6.54%
Pilgrim's Pride Corp.'s gross profit margin has exhibited fluctuations over the past five years. In 2023, the gross profit margin decreased to 6.44% from 10.37% in 2022, indicating a significant decline in profitability. This decline may be attributed to various factors such as changes in input costs, pricing strategies, or operational efficiencies.
Comparing the most recent data to 2021 and 2020, the gross profit margin has shown an overall decreasing trend, suggesting potential challenges in maintaining or increasing profitability. However, it is worth noting that the gross profit margin improved in 2022 compared to 2021, before declining again in 2023.
Furthermore, when comparing the current gross profit margin to 2019, there has been a notable decrease from 9.38% to 6.44%. This substantial decline over the five-year period may raise concerns about the company's ability to effectively manage costs and generate profits from its operations.
In conclusion, Pilgrim's Pride Corp.'s gross profit margin analysis highlights fluctuations and a downward trend in profitability in recent years. It may be crucial for the company to closely monitor and address the factors impacting its gross profit margin to maintain a sustainable level of profitability in the future.
Peer comparison
Dec 31, 2023