Stepan Company (SCL)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	277,598	427,069	395,810	383,613	339,714
Revenue	US$ in thousands	2,306,120	2,759,510	2,339,460	1,863,540	1,847,220
Gross profit margin		12.04%	15.48%	16.92%	20.59%	18.39%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $277,598K ÷ $2,306,120K
= 12.04%

Stepan Co.'s gross profit margin has shown a declining trend over the past five years. The gross profit margin decreased from 18.28% in 2019 to 11.94% in 2023. This downward trend indicates that the company's ability to generate profits from its core business activities has weakened over time. Factors such as increasing costs of production, pricing pressures, or changes in product mix could be contributing to this decline. Investors and stakeholders may need to further investigate the underlying reasons for this negative trend to assess the company's financial health and performance.

Peer comparison

Dec 31, 2023

Company name

Symbol

Gross profit margin

Stepan Company

SCL

12.04%

Church & Dwight Company Inc

Procter & Gamble Company

20.88%