Globus Medical (GMED)

Gross profit margin

		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	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	1,394,415	1,351,607	1,274,742	1,149,942	1,020,302	873,161	813,563	793,599	759,118	743,436	725,952	717,944	718,879	703,240	691,074	602,183	571,579	561,900	553,727	605,997
Revenue (ttm)	US$ in thousands	2,519,355	2,478,596	2,236,530	1,898,454	1,568,476	1,226,440	1,096,949	1,068,982	1,022,843	998,366	973,939	961,307	958,102	941,526	927,903	825,809	789,042	767,264	747,381	792,998
Gross profit margin		55.35%	54.53%	57.00%	60.57%	65.05%	71.19%	74.17%	74.24%	74.22%	74.47%	74.54%	74.68%	75.03%	74.69%	74.48%	72.92%	72.44%	73.23%	74.09%	76.42%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,394,415K ÷ $2,519,355K
= 55.35%

The gross profit margin of Globus Medical decreased gradually from March 31, 2020, where it stood at 76.42%, to December 31, 2024, where it dropped to 55.35%. During this period, there were fluctuations in the gross profit margin, with some quarters showing increases such as from March 31, 2021, to December 31, 2021, where it improved from 72.92% to 75.03%. However, from March 31, 2023, the trend reversed, and the gross profit margin experienced significant declines.

Overall, the trend in the gross profit margin indicates that the company may be facing challenges in maintaining profitability and efficiency in its cost of goods sold. This declining gross profit margin could be a cause for concern as it may impact the company's overall financial performance and competitiveness in the market. It would be essential for Globus Medical to closely monitor and address the factors leading to this decrease in gross profit margin to ensure sustainable and profitable operations in the future.