Liquidity Services Inc (LQDT)

Gross profit margin

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Gross profit	US$ in thousands	185,166	172,140	160,643	149,853	109,924
Revenue	US$ in thousands	367,205	317,498	280,423	258,046	207,151
Gross profit margin		50.43%	54.22%	57.29%	58.07%	53.06%

September 30, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $185,166K ÷ $367,205K
= 50.43%

Liquidity Services Inc's gross profit margin has shown a declining trend over the past five years. The company's gross profit margin decreased from 53.06% in 2020 to 50.43% in 2024. This suggests that the company's ability to generate profit from its core business operations has weakened over the years.

The decreasing trend in gross profit margin could be an indication of challenges in managing production costs, pricing strategies, or competitive pressures in the market. It is important for the company to closely monitor its cost structure and revenue streams to improve its gross profit margin and enhance overall profitability. Further analysis of the company's cost control measures, pricing policies, and revenue generation strategies may provide insights into addressing the declining trend in gross profit margin and improving financial performance.