Southwest Gas Holdings Inc (SWX)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,286,910 | 1,866,850 | 1,273,600 | 1,173,960 | 1,181,120 |
| Revenue | US$ in thousands | 5,433,970 | 4,960,010 | 3,680,450 | 3,298,870 | 3,119,920 |
| Gross profit margin | 42.09% | 37.64% | 34.60% | 35.59% | 37.86% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,286,910K ÷ $5,433,970K
= 42.09%
The gross profit margin of Southwest Gas Holdings Inc has shown a declining trend over the past five years. Starting at 87.65% in 2019, the gross profit margin has decreased to 76.94% in 2023. This downward trend indicates a reduction in the percentage of revenue that remains after deducting the cost of goods sold.
The decreasing gross profit margin may be attributed to various factors such as increasing costs of goods sold, pricing pressures, or changes in product mix. It suggests a potential decrease in the profitability of the company's core business operations.
It is essential for Southwest Gas Holdings Inc to closely monitor and analyze the factors influencing its gross profit margin to identify areas of improvement and implement strategic measures to enhance profitability in the future.
Peer comparison
Dec 31, 2023