Fulgent Genetics Inc (FLGT)

Gross profit margin

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Gross profit US$ in thousands 104,456 366,901 777,051 331,905 18,421
Revenue US$ in thousands 289,213 618,968 992,584 421,712 32,528
Gross profit margin 36.12% 59.28% 78.29% 78.70% 56.63%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $104,456K ÷ $289,213K
= 36.12%

The gross profit margin of Fulgent Genetics Inc has experienced fluctuations over the past five years. In 2019, the gross profit margin stood at 56.63%, indicating that the company retained approximately 56.63% of its total revenue after accounting for the cost of goods sold. Over the next two years, there was a significant improvement as the margin rose to 78.70% in 2020 and 78.29% in 2021, suggesting increased efficiency in managing production costs.

However, there was a notable decrease in the gross profit margin in 2022 to 59.28%, which may indicate higher costs of goods sold or pricing pressures. This trend continued into 2023 with a further decline to 36.12%, signifying a potential challenge in maintaining profitability.

Overall, the fluctuation in Fulgent Genetics Inc's gross profit margin warrants further investigation into the factors influencing the company's cost structure and pricing strategies to ensure sustainable profitability in the future.