Patterson-UTI Energy Inc (PTEN)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 4,817,140 | 3,780,600 | 2,499,450 | 1,171,170 | 556,491 |
| Revenue | US$ in thousands | 5,377,910 | 4,146,460 | 2,619,410 | 1,316,530 | 1,090,150 |
| Gross profit margin | 89.57% | 91.18% | 95.42% | 88.96% | 51.05% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $4,817,140K ÷ $5,377,910K
= 89.57%
Based on the data provided, Patterson-UTI Energy Inc's gross profit margin has shown a significant upward trend over the past five years, increasing from 51.05% as of December 31, 2020, to 89.57% as of December 31, 2024. This improvement indicates that the company has been able to effectively control its production costs and generate higher revenues from its core operations.
The substantial increase in gross profit margin reflects an enhanced efficiency in managing the cost of goods sold and optimizing the pricing of its products and services. It suggests that Patterson-UTI Energy Inc has been successful in enhancing its overall profitability and operational performance during this period.
The consistently high gross profit margin figures, especially in the latter years, indicate a strong competitive position and effective cost management strategies within the industry. However, it is essential to monitor and analyze other financial metrics in conjunction with the gross profit margin to gain a comprehensive understanding of the company's financial health and performance.
Peer comparison
Dec 31, 2024