Innoviva Inc (INVA)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	171,290	225,750	356,609	304,580	227,380
Revenue	US$ in thousands	291,306	294,888	372,796	318,463	242,036
Gross profit margin		58.80%	76.55%	95.66%	95.64%	93.94%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $171,290K ÷ $291,306K
= 58.80%

The gross profit margin for Innoviva Inc has shown a declining trend over the past five years. In 2019, the company achieved a perfect gross profit margin of 100%, indicating that all the revenue generated from sales covered the cost of goods sold, leaving no room for any other expenses. However, this trend changed in the subsequent years, with the gross profit margin decreasing to 100% in 2020, 100% in 2021, 95.84% in 2022, and further dropping to 86.27% in 2023.

This declining trend indicates that the cost of goods sold has been increasing relative to the revenue generated from sales in recent years. It suggests that the company may be experiencing challenges in managing its production costs effectively or facing pricing pressures that are impacting its ability to maintain higher levels of gross profit margin.

Further analysis and investigation into the factors driving the increase in cost of goods sold or the potential decline in sales revenue would be necessary to understand the underlying reasons behind the declining gross profit margin trend at Innoviva Inc.