Columbia Sportswear Company (COLM)

Net profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 223,273 251,400 311,440 354,108 108,013
Revenue US$ in thousands 3,368,580 3,487,200 3,464,150 3,126,400 2,501,550
Net profit margin 6.63% 7.21% 8.99% 11.33% 4.32%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $223,273K ÷ $3,368,580K
= 6.63%

The net profit margin of Columbia Sportswear Company has shown fluctuations over the years, as evident from the data provided. It increased significantly from 4.32% in December 31, 2020, to 11.33% in December 31, 2021, indicating a substantial improvement in the company's profitability. This sharp rise could be attributed to various factors such as cost management, higher sales volume, or efficient operations.

However, in the subsequent years, the net profit margin experienced a slight decline. By December 31, 2024, it stood at 6.63%, indicating a decrease compared to the peak in 2021. This decline could be due to factors like increased operating expenses, pricing pressures, or changes in the competitive landscape.

Overall, despite some fluctuations, Columbia Sportswear Company has maintained a healthy net profit margin throughout the years, which suggests that the company is effectively managing its costs and generating profits relative to its revenue. Monitoring this metric over time can provide valuable insights into the company's financial performance and efficiency in generating profits.