Globus Medical (GMED)

Operating profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	133,142	177,047	236,345	237,909	227,951	192,123	185,750	163,850	171,953	212,288	208,972	137,533	111,433	102,877	94,925	163,357	171,988	122,009	118,249	117,519
Revenue (ttm)	US$ in thousands	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	785,368	769,639	742,660	721,505
Operating profit margin		8.49%	14.44%	21.55%	22.26%	22.29%	19.24%	19.07%	17.04%	17.95%	22.55%	22.52%	16.65%	14.12%	13.41%	12.70%	20.60%	21.90%	15.85%	15.92%	16.29%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $133,142K ÷ $1,568,476K
= 8.49%

The operating profit margin of Globus Medical Inc has displayed some fluctuations over the past eight quarters. In Q4 2023, the operating profit margin was reported at 12.87%, marking a decrease from the previous quarter's figure of 19.38%. This decline raises concerns about the company's ability to efficiently convert revenue into profit from core operations during this period.

Comparing the current quarter to the same quarter in the previous year, there is a noticeable decrease in operating profit margin from 23.10% in Q4 2022 to 12.87% in Q4 2023. This indicates a significant decline in profitability over the year. It is crucial for the company to closely monitor and address the factors contributing to this decrease to ensure long-term financial health.

Overall, while there have been fluctuations in the operating profit margin of Globus Medical Inc, the recent trend suggests a decline in profitability. Further analysis and action may be necessary to improve operational efficiency and sustain profitability in the future quarters.