Patterson-UTI Energy Inc (PTEN)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 3,780,600 | 2,499,450 | 1,171,170 | 556,491 | 2,201,170 |
| Revenue | US$ in thousands | 4,096,500 | 2,619,410 | 1,316,530 | 1,090,150 | 2,385,360 |
| Gross profit margin | 92.29% | 95.42% | 88.96% | 51.05% | 92.28% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $3,780,600K ÷ $4,096,500K
= 92.29%
Patterson-UTI Energy Inc's gross profit margin has exhibited variability over the past five years, ranging from 23.40% in 2021 to 33.23% in 2023. The company's gross profit margin represents the percentage of revenue remaining after deducting the cost of goods sold, indicating its ability to efficiently manage production costs and generate profits from its core operations.
The increase in the gross profit margin from 2021 to 2023 suggests improved cost control measures or pricing strategies implemented by the company, resulting in a higher proportion of revenues translating into gross profits. This improvement is a positive indicator of the company's operational efficiency and profitability.
Comparing the gross profit margin to industry benchmarks and historical performance can provide further insights into Patterson-UTI Energy Inc's competitiveness, cost structures, and overall financial health. Analyzing trends in the gross profit margin over time can help investors and stakeholders assess the company's ability to maintain profitability and generate returns on its operations.
Peer comparison
Dec 31, 2023