Innoviva Inc (INVA)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	358,711	261,065	317,546	391,866	337
Revenue	US$ in thousands	358,711	310,463	331,339	391,866	336,794
Gross profit margin		100.00%	84.09%	95.84%	100.00%	0.10%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $358,711K ÷ $358,711K
= 100.00%

The gross profit margin of Innoviva Inc has displayed significant fluctuations over the years based on the provided data. In December 2020, the gross profit margin was extremely low at 0.10%, indicating that the company was generating minimal profit after accounting for the cost of goods sold. This could be a red flag in terms of operational efficiencies and cost management.

However, there was a remarkable turnaround in December 2021, with the gross profit margin skyrocketing to 100.00%. This implies that Innoviva Inc was able to generate substantial profit relative to its revenue and production costs, showcasing strong performance and effective pricing strategies.

Subsequently, in December 2022 and 2024, the gross profit margin remained quite high at 95.84% and 100.00%, respectively. These figures suggest continued success in optimizing production costs and maximizing profitability.

Nonetheless, there was a noticeable decline in the gross profit margin in December 2023, dropping to 84.09%. While still relatively high, this decrease may indicate potential challenges in maintaining cost control or pricing pressures that impacted the company's profitability during that period.

Overall, Innoviva Inc has experienced a mix of exceptional and concerning gross profit margin levels in the given years, requiring further investigation into the underlying factors driving these fluctuations to sustain and enhance its financial performance.