Liberty Oilfield Services Inc (LBRT)

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	845,817	947,460	1,023,554	1,068,271	1,158,112	1,207,361	1,164,918	1,049,258	814,325	543,537	308,356	151,218	92,705	80,827	40,990	-17,798	3,097	29,466	108,898	228,417
Revenue (ttm)	US$ in thousands	4,315,154	4,446,540	4,523,860	4,558,970	4,747,930	4,898,560	4,870,910	4,618,539	4,149,229	3,607,374	3,072,851	2,711,520	2,470,782	2,044,633	1,538,401	1,045,475	965,787	1,106,172	1,473,756	1,927,541
Gross profit margin		19.60%	21.31%	22.63%	23.43%	24.39%	24.65%	23.92%	22.72%	19.63%	15.07%	10.03%	5.58%	3.75%	3.95%	2.66%	-1.70%	0.32%	2.66%	7.39%	11.85%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $845,817K ÷ $4,315,154K
= 19.60%

The gross profit margin of Liberty Oilfield Services Inc has shown a fluctuating trend over the past few years. Starting at 11.85% on March 31, 2020, the margin experienced a decline reaching its lowest point at 0.32% on December 31, 2020. This was followed by a series of negative margins in the subsequent quarters, indicating challenges in generating profits from its core operations during that period.

However, the company was able to reverse this trend gradually, with the gross profit margin improving to 19.63% by December 31, 2022. Subsequently, there was a consistent upward trajectory in the margin reaching its peak at 24.65% on September 30, 2023. Despite a slight dip in the margin to 19.60% on December 31, 2024, the overall trend indicates an improvement in the company's ability to generate profits relative to its cost of goods sold.

This pattern suggests that Liberty Oilfield Services Inc successfully implemented strategies to enhance operational efficiency and cost management, ultimately leading to an increase in its gross profit margin over the analyzed period. The recent stability in the margin indicates a positive outlook for the company's profitability in the near future.