PPG Industries Inc (PPG)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 6,593,000 | 7,547,000 | 6,556,000 | 6,516,000 | 6,057,000 |
| Revenue | US$ in thousands | 15,845,000 | 18,246,000 | 17,652,000 | 16,802,000 | 13,834,000 |
| Gross profit margin | 41.61% | 41.36% | 37.14% | 38.78% | 43.78% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $6,593,000K ÷ $15,845,000K
= 41.61%
The gross profit margin of PPG Industries Inc has shown some fluctuations over the period from December 31, 2020, to December 31, 2024. In 2020, the gross profit margin stood at 43.78%, indicating that for every dollar of revenue earned, the company retained $0.4378 as gross profit after deducting the cost of goods sold.
Subsequently, there was a decline in the gross profit margin to 38.78% by the end of December 31, 2021, suggesting a decrease in the proportion of revenue retained as gross profit. This trend continued in 2022 with a further drop to 37.14%, indicating a possible increase in the cost of goods sold relative to revenue.
However, there was a positive upturn in the gross profit margin in 2023, where it increased to 41.36%, showing a recovery in profitability. This positive trend continued into 2024, with a slight improvement to 41.61%, reflecting a better efficiency in generating gross profit from sales.
Overall, the fluctuation in PPG Industries Inc's gross profit margin over the mentioned period may indicate varying cost structures, pricing strategies, or operational efficiencies affecting the company's ability to generate profits from its core operations. It is important for stakeholders to closely monitor these changes to assess the company's performance and financial health.
Peer comparison
Dec 31, 2024