Stanley Black & Decker Inc (SWK)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | -608,800 | 4,284,100 | 5,092,200 | 4,405,400 | 4,805,500 |
| Revenue | US$ in thousands | 15,781,100 | 16,947,400 | 15,281,300 | 12,750,000 | 12,912,900 |
| Gross profit margin | -3.86% | 25.28% | 33.32% | 34.55% | 37.21% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $-608,800K ÷ $15,781,100K
= -3.86%
The gross profit margin of Stanley Black & Decker Inc has exhibited fluctuations over the past five years. In 2019, the company reported a gross profit margin of 37.21%, which declined to 34.55% in 2020. However, the margin rebounded to 33.32% in 2021 before experiencing a significant decrease to 25.28% in 2022 and a further decline to -3.86% in 2023.
The negative gross profit margin in 2023 is a concerning indicator as it implies that the company's cost of goods sold exceeded its total revenue, resulting in a loss on its core operations. This may suggest challenges in managing production costs, pricing strategies, or possible disruptions in the supply chain that impacted profitability.
The fluctuating trend in the gross profit margin highlights the importance for Stanley Black & Decker Inc to closely monitor and manage its cost structure and pricing strategies to improve operational efficiency and profitability in the future. Further analysis of the company's cost components and revenue streams would be necessary to identify underlying factors contributing to the fluctuating gross profit margins.
Peer comparison
Dec 31, 2023