Werner Enterprises Inc (WERN)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	338,632	423,653	521,587	477,934	460,895
Revenue	US$ in thousands	3,030,260	3,283,500	3,289,980	2,734,370	2,372,180
Gross profit margin		11.18%	12.90%	15.85%	17.48%	19.43%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $338,632K ÷ $3,030,260K
= 11.18%

Werner Enterprises Inc's gross profit margin has experienced a gradual decline over the past five years, falling from 19.43% as of December 31, 2020, to 11.18% as of December 31, 2024. This downward trend indicates a decreasing efficiency in generating profits from sales, as a lower gross profit margin implies that a smaller percentage of revenue is available to cover operating expenses and contribute to net income. The declining margin may be attributed to various factors such as increasing costs of goods sold, pricing pressures, or changes in the sales mix. It is essential for the company to closely monitor and address the factors affecting its gross profit margin to maintain a healthy level of profitability and competitiveness in the industry.