Healthcare Services Group Inc (HCSG)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 265,933 | 284,151 | 254,566 | 232,001 | 216,709 | 197,098 | 200,858 | 195,142 | 193,840 | 179,847 | 193,021 | 209,294 | 226,877 | 254,636 | 274,372 | 277,124 | 267,986 | 257,247 | 243,945 | 241,049 |
| Revenue (ttm) | US$ in thousands | 1,715,682 | 1,701,710 | 1,684,949 | 1,677,592 | 1,671,389 | 1,671,569 | 1,674,669 | 1,680,595 | 1,690,176 | 1,686,603 | 1,687,705 | 1,661,019 | 1,641,959 | 1,644,689 | 1,665,046 | 1,718,904 | 1,760,303 | 1,784,086 | 1,803,745 | 1,813,817 |
| Gross profit margin | 15.50% | 16.70% | 15.11% | 13.83% | 12.97% | 11.79% | 11.99% | 11.61% | 11.47% | 10.66% | 11.44% | 12.60% | 13.82% | 15.48% | 16.48% | 16.12% | 15.22% | 14.42% | 13.52% | 13.29% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $265,933K ÷ $1,715,682K
= 15.50%
The gross profit margin for Healthcare Services Group Inc has displayed fluctuations over the reporting periods provided. From March 31, 2020, to September 30, 2021, the gross profit margin progressively increased from 13.29% to 15.48%, indicating improved operational efficiency and cost management. However, this positive trend was not sustained, as the margin declined to 13.82% by December 31, 2021.
Subsequently, the gross profit margin experienced further fluctuations between March 31, 2022, and June 30, 2024, ranging from a low of 10.66% to a high of 16.70%. These fluctuations suggest potential challenges in maintaining consistent profitability, which could be influenced by various factors like changes in pricing strategies, input costs, or operational inefficiencies.
It is worth noting that despite the fluctuations, the gross profit margin showed a general uptrend from June 30, 2024, to December 31, 2024, where it reached 15.50%. This improvement may indicate management's efforts to enhance profitability and streamline operations during the latter part of the period under review.
Overall, the analysis of gross profit margin for Healthcare Services Group Inc highlights the company's ability to generate profits from its core business activities, albeit with notable fluctuations that may warrant further investigation into the underlying drivers impacting profitability.