Williams Companies Inc (WMB)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 10,115,000 | 10,083,000 | 9,996,000 | 5,627,000 | 6,796,000 |
| Revenue | US$ in thousands | 10,907,000 | 10,965,000 | 10,627,000 | 7,719,000 | 8,201,000 |
| Gross profit margin | 92.74% | 91.96% | 94.06% | 72.90% | 82.87% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $10,115,000K ÷ $10,907,000K
= 92.74%
Based on the data provided, Williams Cos Inc's gross profit margin has fluctuated over the past five years. The company's gross profit margin was 82.73% at the end of 2023, which represents a significant improvement from the previous year's margin of 69.27%. This increase indicates that the company was able to better control its cost of goods sold relative to its revenue in 2023.
Comparing the gross profit margin to historical data, we observe variations in performance. In 2021, the gross profit margin was 63.01%, which was lower than the margins in 2020 and 2019. However, there was a notable rebound in 2022 and a further improvement in 2023.
A high gross profit margin typically reflects the company's ability to efficiently manage production costs and generate a higher profit on each sale. The increase in Williams Cos Inc's gross profit margin in 2023 suggests improvements in cost management or potentially an increase in pricing strategies that have positively impacted the company's profitability on its products and services.
Peer comparison
Dec 31, 2023