Worthington Industries Inc (WOR)
Gross profit margin
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 663,312 | 714,816 | 639,078 | 443,337 | 479,955 |
| Revenue | US$ in thousands | 4,916,390 | 5,242,220 | 3,171,430 | 3,059,120 | 3,759,560 |
| Gross profit margin | 13.49% | 13.64% | 20.15% | 14.49% | 12.77% |
May 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $663,312K ÷ $4,916,390K
= 13.49%
Worthington Enterprises Inc.'s gross profit margin has fluctuated over the past five years, ranging from 12.77% in 2019 to 20.15% in 2021. The gross profit margin measures the percentage of revenue that exceeds the cost of goods sold, indicating the company's ability to generate profit from its core operations.
The significant increase in the gross profit margin from 2019 to 2021 suggests that the company effectively managed its production costs or potentially increased product pricing. This improvement may signify enhanced operational efficiency, better negotiation with suppliers, or a successful pricing strategy.
However, the decrease in the gross profit margin to 13.49% in 2023 warrants attention. It could indicate increased production costs, pricing pressure, or potential inefficiencies in the production process. Management should evaluate the drivers behind this decline and take appropriate corrective actions to maintain or improve the gross profit margin.
Overall, while the company experienced fluctuations in its gross profit margin, the significant increase in 2021 and the subsequent decline in 2023 should prompt management to thoroughly review their cost structure and pricing strategies to ensure sustained profitability.
Peer comparison
May 31, 2023