Hims Hers Health Inc (HIMS)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 714,949 | 408,722 | 204,494 | 109,450 | 44,605 |
| Revenue | US$ in thousands | 872,000 | 526,916 | 271,878 | 148,757 | 82,558 |
| Gross profit margin | 81.99% | 77.57% | 75.22% | 73.58% | 54.03% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $714,949K ÷ $872,000K
= 81.99%
The gross profit margin of Hims Hers Health Inc has shown a consistent upward trend over the past five years, reflecting improvements in the company's ability to generate profits from its core operations. The margin increased from 54.03% in 2019 to 81.99% in 2023. This indicates that the company has been effectively managing its cost of goods sold and pricing strategies to enhance profitability. The rising gross profit margin suggests that Hims Hers Health Inc has been able to increase its revenues relative to the cost of goods sold, which is a positive sign of operational efficiency and potentially improving product pricing power. Overall, the steady improvement in the gross profit margin demonstrates Hims Hers Health Inc's strengthening position in delivering value from its sales revenue.