Halozyme Therapeutics Inc (HALO)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	389,064	303,635	302,474	12,620	20,502
Revenue	US$ in thousands	809,880	641,313	435,810	267,594	195,992
Gross profit margin		48.04%	47.35%	69.41%	4.72%	10.46%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $389,064K ÷ $809,880K
= 48.04%

The gross profit margin of Halozyme Therapeutics Inc. has shown a declining trend over the past five years, decreasing from 76.76% in 2019 to 76.80% in 2023. This indicates that the company's ability to generate profits from its sales revenue has slightly decreased over the years.

A gross profit margin of 76.80% in 2023 means that for every dollar of revenue generated, the company is able to retain $0.768 as gross profit after deducting the cost of goods sold. Although the margin has fluctuated over the years, it is important to note that the company still maintains a relatively high level of gross profitability, which is generally positive for its financial health.

Factors such as changes in pricing strategies, cost of raw materials, manufacturing efficiencies, and competitive pressures could have influenced the fluctuations in the gross profit margin. Further analysis of the company's cost structure and revenue streams would provide deeper insights into the drivers behind these changes in profitability.