Forward Air Corporation (FWRD)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	339,651	330,152	546,821	365,326	229,113
Revenue	US$ in thousands	2,474,260	1,370,740	1,973,400	1,662,430	1,269,570
Gross profit margin		13.73%	24.09%	27.71%	21.98%	18.05%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $339,651K ÷ $2,474,260K
= 13.73%

The gross profit margin of Forward Air Corporation has shown some fluctuations over the past five years. In December 31, 2020, the gross profit margin was 18.05%, indicating that the company retained 18.05% of its revenue after accounting for the direct costs of goods sold.

By December 31, 2021, the gross profit margin had improved to 21.98%, suggesting that the company was able to achieve better cost efficiency or command higher prices for its products or services. This improvement was further exemplified by the significant increase in the gross profit margin to 27.71% by December 31, 2022.

However, there was a slight decline in the gross profit margin to 24.09% by December 31, 2023, indicating that the company's ability to maintain profitability from its core operations may have encountered some challenges during that period.

The most notable change occurred by December 31, 2024, where the gross profit margin dropped significantly to 13.73%. This could be a cause for concern as it suggests that the company may be facing difficulties in managing its production costs or experiencing pricing pressures.

Overall, while the gross profit margin of Forward Air Corporation has shown variability over the years, it is essential for the company to closely monitor and address the factors influencing these fluctuations to maintain a healthy level of profitability in the long term.