Fortrea Holdings Inc. (FTRE)

Gross profit margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024
Gross profit (ttm) US$ in thousands -212,700 -199,000 -202,500 -100,700
Revenue (ttm) US$ in thousands 2,646,300 2,690,400 2,756,600 2,905,600
Gross profit margin -8.04% -7.40% -7.35% -3.47%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $-212,700K ÷ $2,646,300K
= -8.04%

Fortrea Holdings Inc.'s gross profit margin, as indicated by the data provided, has exhibited a consistent downward trend over the four quarters of 2024. The company's gross profit margin stood at -3.47% as of March 31, 2024, showing a negative percentage indicating that the company's cost of goods sold exceeded its revenues significantly. Subsequently, the margin decreased to -7.35% by June 30, 2024, and further declined to -7.40% by September 30, 2024. The trend continued with a margin of -8.04% as of December 31, 2024, signaling a year-end decrease in profitability.

The persistently negative gross profit margin suggests that Fortrea Holdings Inc. may be facing challenges in efficiently managing its production costs or in pricing its products competitively. This trend raises concerns about the company's operational efficiency and its ability to generate profit from its core business activities. Management may need to closely evaluate its cost structure, pricing strategies, and overall operational processes to reverse this trend and improve the company's financial performance.