Forward Air Corporation (FWRD)

Gross profit margin

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Gross profit (ttm)	US$ in thousands	377,349	176,619	44,621	-21,230	69,693	251,087	386,589	487,982	546,103	546,821	520,752	470,148	411,115	365,326	318,517	285,987	245,535	231,114	240,827	251,669
Revenue (ttm)	US$ in thousands	2,565,295	2,474,262	2,179,844	1,937,272	1,695,788	1,581,041	1,723,813	1,820,471	1,933,508	1,973,403	1,952,132	1,861,734	1,767,186	1,662,427	1,552,839	1,465,211	1,326,218	1,306,525	1,337,688	1,367,354
Gross profit margin		14.71%	7.14%	2.05%	-1.10%	4.11%	15.88%	22.43%	26.81%	28.24%	27.71%	26.68%	25.25%	23.26%	21.98%	20.51%	19.52%	18.51%	17.69%	18.00%	18.41%

March 31, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $377,349K ÷ $2,565,295K
= 14.71%

The gross profit margin of Forward Air Corporation has shown some fluctuations over the periods analyzed. The trend indicates a general increase from June 30, 2020, to June 30, 2023, reaching a peak of 28.24% on March 31, 2023. This upward trend suggests improved efficiency in managing production costs relative to sales revenue during this period.

However, starting from June 30, 2023, there was a noticeable decline in the gross profit margin, dropping to 15.88% by December 31, 2023, which may indicate challenges in maintaining profitability and controlling costs. The margin further declined significantly to 4.11% on March 31, 2024, and even turned negative by June 30, 2024.

The subsequent rebound in the gross profit margin from September 30, 2024, onwards, showing positive figures, suggests that the company implemented measures to address the earlier decline and improve its profitability. By March 31, 2025, the gross profit margin had recovered significantly to 14.71%, indicating a potential return to a more sustainable level of profitability.

Overall, the gross profit margin analysis reveals periods of both strength and weakness in Forward Air Corporation's ability to generate gross profit relative to its sales revenue. It is essential for the company to continue monitoring and managing its cost structure effectively to maintain a healthy level of profitability in the future.