Stepan Company (SCL)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 272,214 | 277,598 | 427,069 | 395,810 | 383,613 |
| Revenue | US$ in thousands | 2,180,270 | 2,325,770 | 2,773,270 | 2,345,970 | 1,869,750 |
| Gross profit margin | 12.49% | 11.94% | 15.40% | 16.87% | 20.52% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $272,214K ÷ $2,180,270K
= 12.49%
Based on the data provided, Stepan Company's gross profit margin has shown a declining trend over the past five years. In December 2020, the gross profit margin was at 20.52%, which declined to 16.87% by December 2021. This downward trend continued in the following years, with the margin dropping to 15.40% by December 2022, 11.94% by December 2023, and then slightly increasing to 12.49% by December 2024.
The decreasing trend in the gross profit margin indicates that Stepan Company may be facing challenges in maintaining profitability on its sales after accounting for the cost of goods sold. This could be attributed to various factors such as increasing production costs, pricing pressure, or inefficiencies in the company's operations.
It is important for Stepan Company to closely monitor and address the factors affecting its gross profit margin to ensure sustainable profitability in the long run. Management should focus on improving operational efficiency, controlling costs, and possibly revisiting pricing strategies to reverse the declining trend in the gross profit margin.
Peer comparison
Dec 31, 2024