Sylvamo Corp (SLVM)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Gross profit | US$ in thousands | 517,000 | 609,000 | 987,000 |
| Revenue | US$ in thousands | 3,687,000 | 3,559,000 | 3,504,000 |
| Gross profit margin | 14.02% | 17.11% | 28.17% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $517,000K ÷ $3,687,000K
= 14.02%
Over the past four years, Sylvamo Corp's gross profit margin has shown a declining trend. The gross profit margin dropped from 30.18% in 2020 to 24.51% in 2023. This indicates that the company's cost of goods sold as a percentage of revenue has been increasing, which could be a result of factors such as higher production costs, pricing pressures, or changes in the product mix.
The decreasing trend in gross profit margin may raise concerns about the company's efficiency in managing production costs and pricing strategies. Management should closely monitor and address the factors impacting the gross profit margin to ensure sustainable profitability and competitiveness in the market.
Peer comparison
Dec 31, 2023