Globus Medical (GMED)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	1,020,300	759,118	718,879	571,579	605,393
Revenue	US$ in thousands	1,568,480	1,022,840	958,102	789,042	785,368
Gross profit margin		65.05%	74.22%	75.03%	72.44%	77.08%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,020,300K ÷ $1,568,480K
= 65.05%

The gross profit margin of Globus Medical Inc has shown a decreasing trend over the past five years. In 2019, the gross profit margin stood at 77.08%, indicating that for every dollar of revenue, the company retained $0.77 after deducting the cost of goods sold. This margin decreased to 72.44% in 2020 before experiencing a slight improvement to 75.03% in 2021. However, in the most recent year of 2023, the gross profit margin saw a significant decline to 65.05%.

This declining trend in the gross profit margin may indicate challenges in managing the cost of goods sold compared to the revenue generated. It may also suggest pricing pressures or increased competition impacting the company's ability to maintain profitability at the gross profit level. Further analysis of the company's cost structure and pricing strategies would be beneficial in understanding the underlying factors driving this trend in the gross profit margin.