Fulgent Genetics Inc (FLGT)

Net profit margin

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income US$ in thousands -167,825 143,403 507,364 214,310 -411
Revenue US$ in thousands 289,213 618,968 992,584 421,712 32,528
Net profit margin -58.03% 23.17% 51.12% 50.82% -1.26%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $-167,825K ÷ $289,213K
= -58.03%

Net profit margin is a key financial ratio that measures a company's profitability by expressing its net income as a percentage of total revenue. For Fulgent Genetics Inc, the net profit margin has shown significant fluctuations over the past five years.

In 2023, the company's net profit margin was negative at -58.03%, indicating that the company incurred a net loss for the year in relation to its total revenue. This steep decline from the positive margins seen in the previous years raises concerns about the company's ability to effectively control its expenses relative to its revenue generation in the most recent fiscal year.

In contrast, in 2022 and 2021, Fulgent Genetics Inc achieved relatively high net profit margins of 23.17% and 51.12%, respectively, reflecting strong profitability during these periods. These positive margins suggest that the company was successful in generating substantial profits from its operations and managing its costs effectively.

Similarly, in 2020, the company maintained a high net profit margin of 50.82%, indicating continued profitability and efficiency in its financial performance. This consistent strong performance over these years demonstrates Fulgent Genetics Inc's ability to generate healthy profits relative to its total revenue.

However, in 2019, the company experienced a negative net profit margin of -1.26%, indicating a period of loss-making or lower profitability compared to the following years. This decline in profitability may be attributed to various factors such as increased expenses, lower revenue, or operational challenges during that particular year.

Overall, the fluctuating trend in Fulgent Genetics Inc's net profit margin over the five-year period reflects the company's varying financial performance and highlights the importance of closely monitoring and analyzing its profitability ratios to assess its financial health and sustainability.