Liquidity Services Inc (LQDT)

Net profit margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	20,978	40,324	50,949	-3,774	-19,260
Revenue	US$ in thousands	317,498	280,423	258,046	207,151	227,988
Net profit margin		6.61%	14.38%	19.74%	-1.82%	-8.45%

September 30, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $20,978K ÷ $317,498K
= 6.61%

Liquidity Services Inc's net profit margin has experienced fluctuations over the past five years. In Sep 30, 2019, the company reported a negative net profit margin of -8.50%, indicating that its expenses exceeded its revenue, resulting in a net loss. However, the company made significant improvements in the subsequent years, achieving a net profit margin of -1.83% in Sep 30, 2020, 19.78% in Sep 30, 2021, and 14.40% in Sep 30, 2022.

The most recent data for Sep 30, 2023, shows a net profit margin of 6.67%, representing a decrease from the previous year. This decline may indicate a decrease in profitability relative to the prior year. It's worth noting that a declining net profit margin warrants further investigation into the company's cost control measures, revenue generation, and overall operational efficiency. Additionally, a lower net profit margin could potentially impact the company's ability to invest in growth opportunities and return value to shareholders.