Forward Air Corporation (FWRD)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	847,122	1,393,990	1,150,760	328,324	323,159
Revenue	US$ in thousands	1,337,060	1,959,900	1,652,200	1,269,570	1,215,190
Gross profit margin		63.36%	71.13%	69.65%	25.86%	26.59%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $847,122K ÷ $1,337,060K
= 63.36%

The gross profit margin of Forward Air Corporation has exhibited fluctuations over the past five years. From the data provided, it is evident that the company's gross profit margin has experienced significant variability. In 2023, the gross profit margin stands at 63.36%, showing a decrease from the previous year's margin of 71.13% but still higher than the margins in 2021, 2020, and 2019, which were 69.65%, 25.86%, and 26.59%, respectively.

The substantial increase in gross profit margin from 2020 to 2021 reflects an improvement in the company's ability to generate revenue after accounting for the cost of goods sold. However, the subsequent decrease in 2022 and a further decline in 2023 suggest a potential challenge in maintaining profitability or controlling costs. The significant fluctuations in gross profit margin over the years may indicate changes in pricing strategies, cost structures, or operational efficiencies within Forward Air Corporation's business operations.

Overall, the analysis of Forward Air Corporation's gross profit margin highlights the importance of consistently monitoring and evaluating the company's revenue generation and cost management to ensure sustainable profitability and financial performance.