Addus HomeCare Corporation (ADUS)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	375,021	365,952	360,478	349,638	339,876	326,232	314,687	307,967	299,738	293,764	285,625	278,837	269,848	256,157	245,412	231,599	226,237	224,675	213,550	198,246
Revenue (ttm)	US$ in thousands	1,158,256	1,131,206	1,109,629	1,080,856	1,051,791	1,022,325	991,801	968,399	943,504	921,874	898,854	880,430	859,640	832,331	810,463	777,659	762,842	759,222	735,551	700,648
Gross profit margin		32.38%	32.35%	32.49%	32.35%	32.31%	31.91%	31.73%	31.80%	31.77%	31.87%	31.78%	31.67%	31.39%	30.78%	30.28%	29.78%	29.66%	29.59%	29.03%	28.29%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $375,021K ÷ $1,158,256K
= 32.38%

The gross profit margin of Addus HomeCare Corporation has shown a relatively steady improvement over the past few years, indicating the company's ability to effectively manage its cost of goods sold and generate profit from its core operations. The margin has gradually increased from 28.29% as of March 31, 2020, to 32.38% as of December 31, 2024. This upward trend suggests that the company has been able to either increase its sales prices, negotiate better terms with suppliers, or enhance its operational efficiency.

The consistent improvement in the gross profit margin is a positive sign for investors and stakeholders, as it indicates a healthy and sustainable financial performance. It shows that Addus HomeCare Corporation is effectively controlling its production costs and generating higher profits from its revenue. However, the slight fluctuations in the margin over certain periods, such as the dip seen in September 30, 2024, and the subsequent recovery by December 31, 2024, may warrant closer scrutiny to understand the underlying factors driving these changes.

Overall, the upward trajectory of Addus HomeCare Corporation's gross profit margin reflects positively on the company's operational efficiency and financial performance, providing confidence in its ability to maintain profitability and create value for its shareholders.