Liquidity Services Inc (LQDT)

Gross profit margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Gross profit	US$ in thousands	172,140	160,643	149,853	109,924	113,280
Revenue	US$ in thousands	317,498	280,423	258,046	207,151	227,988
Gross profit margin		54.22%	57.29%	58.07%	53.06%	49.69%

September 30, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $172,140K ÷ $317,498K
= 54.22%

Liquidity Services Inc's gross profit margin has exhibited a declining trend over the past five years, decreasing from 54.79% in 2019 to 54.74% in 2023. Despite some fluctuations, the overall trajectory indicates a gradual erosion of the company's ability to generate profits from its core operations. This trend may warrant further investigation into the underlying factors impacting the company's cost of goods sold and pricing strategies. Additionally, a deeper analysis of the company's revenue and cost structure could provide insights into potential areas for operational improvement to reverse this declining margin trend.