Sterling Construction Company Inc (STRL)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 426,123 | 337,638 | 274,567 | 192,068 | 179,933 |
| Revenue | US$ in thousands | 2,115,760 | 1,972,230 | 1,769,440 | 1,414,370 | 1,226,740 |
| Gross profit margin | 20.14% | 17.12% | 15.52% | 13.58% | 14.67% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $426,123K ÷ $2,115,760K
= 20.14%
The gross profit margin of Sterling Construction Company Inc. has demonstrated a consistent upward trajectory over the observed period from December 31, 2020, through December 31, 2024. In 2020, the gross profit margin was 14.67%, reflecting the company's initial profitability metric during that year. This margin declined slightly in 2021 to 13.58%, indicating a modest decrease in gross profitability, potentially attributable to increased cost of goods sold or pricing pressures.
However, from 2021 onwards, the company's gross profit margin has shown a steady improvement. By 2022, it increased to 15.52%, surpassing the previous year's figure. This positive trend continued, and by 2023, the gross profit margin further rose to 17.12%, suggesting enhanced efficiency or favorable changes in cost management and pricing strategies.
The most notable development occurs in 2024, where the gross profit margin reaches 20.14%. This significant increase indicates a substantial enhancement in the company's gross profitability, which could be driven by improved operational efficiencies, better project management, favorable market conditions, or a strategic adjustment in pricing policies.
Overall, the trend indicates a strengthening of Sterling Construction Company's gross profit margin over these years, moving from a relatively modest margin in 2020 to a more robust margin of over 20% in 2024. This progression suggests the company's increasing ability to generate profit from its revenue base, reflecting positively on its operational efficiency and cost control measures during this period.
Peer comparison
Dec 31, 2024