Liquidity Services Inc (LQDT)

Net profit margin

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Net income	US$ in thousands	19,991	20,978	40,324	50,949	-3,774
Revenue	US$ in thousands	367,205	317,498	280,423	258,046	207,151
Net profit margin		5.44%	6.61%	14.38%	19.74%	-1.82%

September 30, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $19,991K ÷ $367,205K
= 5.44%

Liquidity Services Inc's net profit margin has shown fluctuating trends over the past five years. In September 2024, the net profit margin decreased to 5.44% from 6.61% in the previous year. This decline indicates that the company's profitability relative to its revenue has decreased.

Comparing the current net profit margin to previous years, there has been a notable decrease from 14.38% in September 2022 and 19.74% in September 2021. The significant drop in profitability over these years suggests that the company may have experienced challenges or faced increased costs impacting its bottom line.

Moreover, the negative net profit margin of -1.82% in September 2020 indicates that the company incurred a net loss during that period. Despite the improvement from a loss to positive margins in subsequent years, the decreasing trend in profitability raises concerns about the company's operational efficiency and financial performance.

Overall, the fluctuating net profit margins of Liquidity Services Inc depict a volatile financial performance, emphasizing the need for the company to closely monitor and address factors impacting its profitability to ensure sustainable growth and success.