Olympic Steel Inc (ZEUS)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 283,225 | 314,262 | 349,406 | 135,974 | 174,405 |
| Revenue | US$ in thousands | 2,158,010 | 2,562,110 | 2,318,270 | 1,232,060 | 1,579,250 |
| Gross profit margin | 13.12% | 12.27% | 15.07% | 11.04% | 11.04% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $283,225K ÷ $2,158,010K
= 13.12%
The gross profit margin of Olympic Steel Inc. has shown fluctuations over the past five years. In 2023, the gross profit margin increased to 21.94% from 18.99% in 2022, indicating an improvement in the company's ability to generate profits from its sales revenue after accounting for the cost of goods sold. This suggests better cost management or potentially higher selling prices relative to costs.
Comparing to 2021, the gross profit margin decreased slightly from 22.07% to 21.94% in 2023. Although there was a slight decline, the margin remains relatively strong. In 2020, the gross profit margin stood at 20.67%, showing an improvement in 2023. Notably, the gross profit margin has generally been increasing since 2019 when it was at 18.93%. This upward trend indicates that Olympic Steel Inc. has been gradually improving its efficiency in managing production costs and increasing its profitability over the years.
Overall, the increasing trend in the gross profit margin for Olympic Steel Inc. reflects positive momentum in the company's profitability and operational performance in recent years. However, it is essential to further analyze the underlying factors contributing to these changes to gain a deeper understanding of the company's financial health.
Peer comparison
Dec 31, 2023