Glaukos Corp (GKOS)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -134,661 | -99,195 | -49,593 | -120,348 | 15,424 |
| Revenue | US$ in thousands | 301,165 | 266,924 | 278,319 | 211,679 | 233,795 |
| Net profit margin | -44.71% | -37.16% | -17.82% | -56.85% | 6.60% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $-134,661K ÷ $301,165K
= -44.71%
Net profit margin is a key financial ratio that indicates the percentage of revenue that translates into profit after all expenses have been deducted. Glaukos Corporation's net profit margin has shown significant fluctuations over the past five years.
In 2019, the company had a positive net profit margin of 6.51%, indicating that for every dollar of revenue generated, Glaukos Corporation earned approximately $0.065 in profit. However, the profitability deteriorated in the following years, particularly in 2020 when the net profit margin plummeted to -53.50%. This negative value implies that the company incurred losses that exceeded its revenue.
Although there was a slight improvement in 2021 with a net profit margin of -16.87%, the company still struggled to maintain profitability. The trend worsened in 2022 with a net profit margin of -35.07% and further deteriorated in 2023 to -42.79%.
The consistently negative net profit margins over the past few years raise concerns about Glaukos Corporation's ability to generate sustainable profits and efficiently manage its expenses. Investors and stakeholders may view this trend as a red flag and may question the company's overall financial health and long-term viability. Further analysis of the company's cost structure, revenue streams, and operational efficiency would be necessary to understand the underlying reasons for the declining profitability.
Peer comparison
Dec 31, 2023