Trimble Inc (TRMB)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,332,800 | 2,105,600 | 2,034,700 | 1,754,900 | 1,780,900 |
| Revenue | US$ in thousands | 3,798,700 | 3,676,300 | 3,659,400 | 3,152,000 | 3,271,300 |
| Gross profit margin | 61.41% | 57.27% | 55.60% | 55.68% | 54.44% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,332,800K ÷ $3,798,700K
= 61.41%
Trimble Inc's gross profit margin has shown a generally positive trend over the past five years, indicating an improvement in the company's ability to generate profits from its core operations. In 2023, the gross profit margin reached 61.41%, a significant increase from 57.27% in 2022 and the highest level in the five-year period. This suggests improved efficiency in controlling direct costs associated with producing goods or services.
The steady increase in the gross profit margin from 2019 to 2023 reflects Trimble Inc's effective cost management and pricing strategies, resulting in a higher proportion of revenue retained as gross profit. A higher gross profit margin indicates that the company is able to convert a larger percentage of its sales into profits after accounting for the cost of goods sold.
Overall, the improving trend in Trimble Inc's gross profit margin is a positive indicator of the company's operational efficiency and profitability. It suggests that the company may be effectively managing production costs, negotiating better supplier terms, or effectively passing on cost increases to customers.
Peer comparison
Dec 31, 2023