Grocery Outlet Holding Corp (GO)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 39,465 | 79,437 | 65,052 | 62,310 | 106,713 |
| Revenue | US$ in thousands | 4,371,500 | 3,969,450 | 3,578,100 | 3,079,580 | 3,134,640 |
| Net profit margin | 0.90% | 2.00% | 1.82% | 2.02% | 3.40% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $39,465K ÷ $4,371,500K
= 0.90%
The net profit margin of Grocery Outlet Holding Corp has exhibited a downward trend over the years based on the provided data. In December 31, 2020, the company had a net profit margin of 3.40%, which decreased to 2.02% by December 31, 2021. This decline continued in the following years, with the net profit margin dropping to 1.82% by December 31, 2022, before showing a slight improvement to 2.00% by December 31, 2023. However, the net profit margin decreased significantly to 0.90% by December 31, 2024.
This trend indicates that Grocery Outlet Holding Corp's profitability in relation to its revenue has been eroding over time, which may raise concerns about the company's efficiency in managing its costs and generating profits. It would be critical for the company to closely evaluate its cost structure and revenue generation strategies to potentially improve its profitability and ensure long-term financial sustainability.
Peer comparison
Dec 31, 2024