Globus Medical (GMED)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	1,483,880	1,020,300	759,118	718,879	571,579
Revenue	US$ in thousands	2,519,360	1,568,480	1,022,840	958,102	789,042
Gross profit margin		58.90%	65.05%	74.22%	75.03%	72.44%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,483,880K ÷ $2,519,360K
= 58.90%

Based on the provided financial data, the gross profit margin of Globus Medical has displayed a fluctuating trend over the years. The margin stood at 72.44% as of December 31, 2020, showing a moderate level of profitability. Subsequently, there was an improvement in 2021, with the margin increasing to 75.03%, indicating a healthier position in terms of generating profits after accounting for the cost of goods sold.

In the following year, the gross profit margin slightly decreased to 74.22%, though it remained relatively robust. However, a more significant decline was observed by the end of 2023, with the margin decreasing notably to 65.05%. This decline suggests a potential decrease in the efficiency of the company's production and pricing strategies or an increase in the cost of goods sold relative to sales revenue.

The most recent data point for December 31, 2024, reflects a further reduction in the gross profit margin to 58.90%. This sharp decline indicates a significant decrease in the profitability of Globus Medical, signaling potential challenges in managing production costs or pricing strategies relative to its competitors.

Overall, the fluctuating trend in the gross profit margin of Globus Medical underscores the importance of closely monitoring and managing costs, pricing strategies, and operational efficiency to sustain and enhance profitability in the evolving market landscape.