Gentherm Inc (THRM)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 351,624 | 273,650 | 303,631 | 268,104 | 288,335 |
| Revenue | US$ in thousands | 1,447,650 | 1,192,770 | 1,044,070 | 902,575 | 968,913 |
| Gross profit margin | 24.29% | 22.94% | 29.08% | 29.70% | 29.76% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $351,624K ÷ $1,447,650K
= 24.29%
Gentherm Inc's gross profit margin has experienced fluctuations over the past five years. In 2023, the gross profit margin stood at 23.93%, showing a slight improvement compared to the previous year's 22.72%. However, it was lower than the levels seen in 2021 (29.02%), 2020 (29.36%), and 2019 (29.67%).
The declining trend in gross profit margin from 2021 to 2023 may indicate potential challenges in managing the cost of goods sold relative to revenue. This could be due to various factors such as increased production costs, pricing pressures, or inefficiencies in the production process.
Further analysis of the components contributing to the cost of goods sold and revenue generation would be necessary to pinpoint the specific drivers behind these fluctuations in the gross profit margin. Additionally, monitoring how the company reacts to these fluctuations and implements strategies to improve profitability will be crucial for assessing its future financial performance.
Peer comparison
Dec 31, 2023