Globus Medical (GMED)

Net 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
Net income (ttm)	US$ in thousands	102,984	91,513	40,675	66,627	122,873	157,904	204,337	201,215	190,170	155,211	154,991	141,946	149,191	187,042	184,047	121,665	102,285	94,857	88,948	147,948
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
Net profit margin		4.09%	3.69%	1.82%	3.51%	7.83%	12.87%	18.63%	18.82%	18.59%	15.55%	15.91%	14.77%	15.57%	19.87%	19.83%	14.73%	12.96%	12.36%	11.90%	18.66%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $102,984K ÷ $2,519,355K
= 4.09%

Net profit margin is a key profitability ratio that indicates the percentage of revenue that translates into net income after accounting for all expenses. Looking at the data provided for Globus Medical, we observe fluctuations in the net profit margin over the reporting periods.

From March 31, 2020, to March 31, 2021, Globus Medical saw a steady increase in net profit margin from 18.66% to 14.73%, reaching a peak of 19.83% on June 30, 2021. This upward trend suggests improved efficiency in managing expenses relative to revenue during this period.

However, from September 30, 2021, to December 31, 2024, there was a gradual decline in the net profit margin, dropping to 4.09% by the end of December 31, 2024. This decline indicates a decrease in profitability, potentially due to rising costs or a slowdown in revenue growth relative to expenses.

The sharp decrease in net profit margin from March 31, 2024, to June 30, 2024, and then a slight increase by September 30, 2024, followed by another increase by December 31, 2024, may indicate temporary fluctuations or specific one-time events affecting profitability during those periods.

Overall, the net profit margin trend for Globus Medical shows both positive and negative movements, suggesting varying levels of profitability and efficiency in managing costs over the different reporting periods. It would be essential for the company to closely monitor its expenses and revenue streams to improve and sustain its profitability in the future.