Fulgent Genetics Inc (FLGT)

Gross profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Gross profit US$ in thousands 107,215 104,456 366,901 777,051 331,905
Revenue US$ in thousands 283,470 289,213 618,968 992,584 421,712
Gross profit margin 37.82% 36.12% 59.28% 78.29% 78.70%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $107,215K ÷ $283,470K
= 37.82%

Fulgent Genetics Inc's gross profit margin has exhibited fluctuating trends over the past five years. The margin started at a high of 78.70% on December 31, 2020, indicating strong profitability on each dollar of revenue after deducting the cost of goods sold. However, there has been a gradual decline in subsequent years, with the margin decreasing to 78.29% by December 31, 2021.

A significant drop was observed by December 31, 2022, with the gross profit margin falling to 59.28%. This decline implies that Fulgent Genetics may have either experienced increased production costs or faced pricing pressures that impacted its profitability.

The trend continued to worsen as of December 31, 2023, when the gross profit margin further decreased to 36.12%, signaling a substantial erosion in the company's ability to generate profits from its core operations. However, there was a slight improvement by December 31, 2024, where the margin rose to 37.82%, albeit still significantly lower than the initial levels.

In conclusion, the declining trend in Fulgent Genetics Inc's gross profit margin raises concerns about its operational efficiency and cost management strategies. Further analysis of the company's cost structure and pricing policies may be necessary to address these deteriorating profitability trends.