Globus Medical (GMED)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 165,991 | 133,142 | 227,951 | 171,953 | 111,433 |
| Revenue | US$ in thousands | 2,519,360 | 1,568,480 | 1,022,840 | 958,102 | 789,042 |
| Operating profit margin | 6.59% | 8.49% | 22.29% | 17.95% | 14.12% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $165,991K ÷ $2,519,360K
= 6.59%
Based on the provided data, the operating profit margin of Globus Medical has shown fluctuating trends over the past five years. The margin increased from 14.12% as of December 31, 2020, to 17.95% by December 31, 2021, indicating improved efficiency in generating profits from operations.
However, the operating profit margin peaked at 22.29% by December 31, 2022, reflecting a significant increase in profitability. Subsequently, there was a notable decline in the margin to 8.49% by the end of 2023, followed by a further decrease to 6.59% as of December 31, 2024.
This declining trend in the operating profit margin suggests potential challenges in managing operational expenses or revenue generation by Globus Medical in recent years. It may be essential for the company to analyze the factors contributing to these fluctuations and implement strategies to enhance operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2024