MGE Energy Inc (MGEE)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | -58,699 | -53,252 | -46,189 | -43,647 | -41,981 |
| Revenue | US$ in thousands | 676,944 | 690,431 | 714,519 | 606,584 | 538,633 |
| Gross profit margin | -8.67% | -7.71% | -6.46% | -7.20% | -7.79% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $-58,699K ÷ $676,944K
= -8.67%
Based on the data provided, MGE Energy Inc's gross profit margin has been consistently negative over the past five years, ranging from -6.46% to -8.67%. This indicates that the company's cost of goods sold exceeds its revenue from sales, resulting in a loss at the gross profit level. The declining trend in the gross profit margin from -7.79% in 2020 to -8.67% in 2024 suggests that the company may be facing challenges in controlling its production or procurement costs relative to its sales revenue. MGE Energy Inc may need to reevaluate its pricing strategy, cost structure, or operational efficiency to improve its gross profit margin and overall profitability.