Cactus Inc (WHD)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	929,850	616,028	383,206	296,708	567,938
Revenue	US$ in thousands	1,090,880	692,436	438,080	349,742	629,748
Gross profit margin		85.24%	88.97%	87.47%	84.84%	90.18%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $929,850K ÷ $1,090,880K
= 85.24%

The gross profit margin of Cactus Inc has shown some fluctuations over the past five years. In 2019, the gross profit margin was at its highest at 90.18%, indicating that the company was able to generate a significant amount of profit after deducting the cost of goods sold.

However, in the subsequent years, the gross profit margin experienced a slight decline, with the lowest margin recorded in 2020 at 84.84%. This could suggest that the company faced challenges in controlling its production costs or experienced pricing pressures during that period.

In 2021 and 2022, the gross profit margin improved but remained below the levels seen in 2019. The margin then decreased slightly in 2023 to 85.24%. This trend indicates that while the company was able to enhance its profitability compared to 2020, it has not fully recovered to the levels achieved in 2019.

Overall, Cactus Inc's gross profit margin has demonstrated variability over the past five years, reflecting the company's ability to manage its production costs and pricing strategies in response to changing market conditions. Further analysis of the underlying factors influencing these fluctuations would be necessary to gain a deeper understanding of the company's financial performance.