Adapthealth Corp (AHCO)

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	652,650	-171,974	-724,421	-754,852	-776,996	-245,344	270,400	280,362	309,392	107,240	116,691	117,629	80,963	84,663	41,894	13,351	23,896	60,714	62,562	50,738
Revenue (ttm)	US$ in thousands	3,226,960	3,195,253	3,163,650	3,118,561	3,071,305	2,996,410	2,952,637	2,893,848	2,862,561	2,123,026	2,015,922	1,899,702	1,673,661	1,677,361	1,322,838	961,338	689,118	816,705	675,717	560,602
Gross profit margin		20.22%	-5.38%	-22.90%	-24.21%	-25.30%	-8.19%	9.16%	9.69%	10.81%	5.05%	5.79%	6.19%	4.84%	5.05%	3.17%	1.39%	3.47%	7.43%	9.26%	9.05%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $652,650K ÷ $3,226,960K
= 20.22%

The gross profit margin of Adapthealth Corp has shown fluctuations over the past several quarters. It stood at 9.05% as of March 31, 2020, and gradually increased to 9.26% by June 30, 2020. However, there was a notable decline to 3.47% by December 31, 2020. The margin further decreased significantly to 1.39% by March 31, 2021, before showing signs of recovery to 6.19% by March 31, 2022.

Subsequently, the gross profit margin fluctuated around 5-10% during the next few quarters, with a peak of 20.22% by December 31, 2024. However, a notable decrease was observed in the margin, dropping to -25.30% by December 31, 2023, and further declining to -22.90% by June 30, 2024.

The negative margins in the latter half of 2023 and early 2024 indicate challenges in generating profits from sales after considering the cost of goods sold. It would be essential for Adapthealth Corp to closely monitor its cost structures and pricing strategies to ensure sustainable profitability in the upcoming periods.