ExlService Holdings Inc (EXLS)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	607,766	515,449	431,359	334,498	335,856
Revenue	US$ in thousands	1,619,020	1,412,250	1,106,200	951,676	981,632
Gross profit margin		37.54%	36.50%	38.99%	35.15%	34.21%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $607,766K ÷ $1,619,020K
= 37.54%

ExlService Holdings Inc's gross profit margin has shown a generally positive trend over the past five years. The company's gross profit margin increased from 33.88% in 2019 to 37.27% in 2023. This indicates that ExlService has been able to improve its efficiency in generating profit from its core business operations.

The upward trend in gross profit margin suggests that ExlService has been effectively managing its costs related to production and sales. This is a positive sign of operational efficiency and can lead to increased profitability for the company.

Additionally, the fluctuation seen in gross profit margin over the years may be reflective of changes in pricing strategies, cost structures, or overall market conditions impacting the company's profitability.

Overall, the improving trend in ExlService's gross profit margin signifies the company's ability to generate more profit from its revenue, which is a key indicator of financial health and operational effectiveness.