Korn Ferry (KFY)
Gross profit margin
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 664,692 | 608,660 | 1,054,275 | 1,512,832 | 2,014,157 | 2,519,896 | 2,560,997 | 2,596,909 | 2,632,110 | 2,658,306 | 2,606,828 | 2,512,319 | 2,360,910 | 2,167,167 | 1,971,591 | 1,738,017 | 1,625,652 | 1,654,823 | 1,709,260 | 1,846,846 |
| Revenue (ttm) | US$ in thousands | 2,741,182 | 2,741,517 | 2,772,004 | 2,795,505 | 2,833,706 | 2,843,678 | 2,866,950 | 2,863,836 | 2,852,715 | 2,850,826 | 2,758,505 | 2,643,455 | 2,473,846 | 2,266,770 | 2,061,161 | 1,819,946 | 1,711,528 | 1,761,627 | 1,828,015 | 1,977,330 |
| Gross profit margin | 24.25% | 22.20% | 38.03% | 54.12% | 71.08% | 88.61% | 89.33% | 90.68% | 92.27% | 93.25% | 94.50% | 95.04% | 95.43% | 95.61% | 95.65% | 95.50% | 94.98% | 93.94% | 93.50% | 93.40% |
January 31, 2025 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $664,692K ÷ $2,741,182K
= 24.25%
The data indicates that Korn Ferry’s gross profit margin experienced a generally stable trend through early 2021, remaining in the high 90% range between April 2020 and April 2021. Specifically, the margin increased from 93.40% in April 2020 to a peak of 95.50% in April 2021, reflecting efficient cost management and high revenue realization relative to cost of goods sold during this period. The margin persisted at elevated levels through late 2021, oscillating narrowly around 95.6%, before gradually declining throughout 2022.
From the second quarter of 2022 onward, a downward trajectory becomes evident, with the gross profit margin decreasing from 94.50% in July 2022 to 88.61% by October 2023. This sustained decline suggests a reduced contribution of gross profit to revenue, potentially attributable to rising costs, shifts in the business model, or increased competitive pressures impacting pricing strategies.
The most notable shift occurs between October 2023 and January 2024, where the gross profit margin precipitously drops from 88.61% to 71.08%. This sharp decrease continues into 2024, with the margin falling further to 54.12% in April, 38.03% in July, and reaching 22.20% in October 2024. By January 2025, a slight recovery is observed, with the margin edging up to 24.25%.
Overall, the pattern reflects a significant deterioration in gross profitability over the analyzed period, especially pronounced from late 2023 onwards. This trend indicates potential challenges such as rising operating expenses, increased costs of services, pricing pressures, or other factors adversely affecting gross margin performance in recent periods. The substantial decline in gross profit margin highlights a critical shift in the company's cost structure or revenue mix, warranting further investigation into underlying causes to assess long-term implications for profitability.
Peer comparison
Jan 31, 2025