Healthcare Services Group Inc (HCSG)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 228,090 | 214,746 | 193,840 | 226,877 | 267,986 |
| Revenue | US$ in thousands | 1,715,680 | 1,671,390 | 1,690,180 | 1,641,960 | 1,760,300 |
| Gross profit margin | 13.29% | 12.85% | 11.47% | 13.82% | 15.22% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $228,090K ÷ $1,715,680K
= 13.29%
Healthcare Services Group Inc's gross profit margin has shown some fluctuations over the past five years. In 2020, the gross profit margin was at 15.22%, indicating that the company retained a relatively high portion of revenue after accounting for the cost of goods sold. However, by the end of 2021, the gross profit margin had declined to 13.82%, suggesting a decrease in the profitability of the company's core business activities.
The trend continued in 2022, with the gross profit margin dropping further to 11.47%, hitting a low point over the period analyzed. This significant decline may raise concerns about the company's ability to effectively manage its production costs and maintain profitability.
Fortunately, the gross profit margin showed signs of improvement in 2023, rising to 12.85%, indicating a possible stabilization of the company's profitability position. By the end of 2024, the gross profit margin had increased slightly to 13.29%, suggesting that Healthcare Services Group Inc may be implementing strategies to enhance its cost efficiency and revenue generation.
Overall, the fluctuation in gross profit margin over the past five years highlights the importance of closely monitoring the company's operational efficiency and cost management strategies to ensure sustainable profitability in the future.