Digi International Inc (DGII)

Gross profit margin

		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	Dec 31, 2019
Gross profit (ttm)	US$ in thousands	249,906	249,667	251,228	251,782	252,203	247,207	240,814	229,926	216,286	199,917	185,047	173,520	166,658	161,550	156,343	154,527	143,972	137,049	128,028	119,716
Revenue (ttm)	US$ in thousands	424,046	431,157	438,190	441,632	444,849	438,424	429,705	413,274	388,225	361,593	337,155	319,743	308,632	302,695	293,954	290,100	279,271	271,062	261,890	254,207
Gross profit margin		58.93%	57.91%	57.33%	57.01%	56.69%	56.39%	56.04%	55.64%	55.71%	55.29%	54.88%	54.27%	54.00%	53.37%	53.19%	53.27%	51.55%	50.56%	48.89%	47.09%

September 30, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $249,906K ÷ $424,046K
= 58.93%

The gross profit margin of Digi International Inc has shown a generally positive trend over the last few quarters, indicating an improving ability to generate profits from its core operations. From December 2019 to September 2024, the gross profit margin has risen steadily from 47.09% to 58.93%. This suggests that the company has been able to effectively manage its production costs and maintain pricing strategies to enhance profitability.

The consistent increase in gross profit margin reflects positively on Digi International's operational efficiency and pricing power. It indicates that the company is effectively controlling its cost of goods sold while maintaining or increasing sales revenue. This improvement in gross profit margin may also be indicative of the company's ability to innovate in its product offerings, negotiate better supplier contracts, or implement cost-saving initiatives.

Overall, the increasing trend in gross profit margin for Digi International Inc is a promising sign of the company's financial health and operational performance. It suggests that the company is on a path towards sustainable profitability and value creation for its stakeholders.