MGE Energy Inc (MGEE)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | -58,699 | -56,376 | -54,534 | -53,969 | -53,352 | -51,204 | -49,502 | -47,805 | -46,189 | -44,242 | -44,569 | -44,177 | -43,646 | -43,731 | -43,217 | -42,960 | -41,981 | -42,385 | -42,776 | -42,411 |
| Revenue (ttm) | US$ in thousands | 676,944 | 670,181 | 662,229 | 664,514 | 690,431 | 715,612 | 718,484 | 722,834 | 714,519 | 686,752 | 669,225 | 647,607 | 606,584 | 581,027 | 570,365 | 556,675 | 538,633 | 543,065 | 546,052 | 551,159 |
| Gross profit margin | -8.67% | -8.41% | -8.23% | -8.12% | -7.73% | -7.16% | -6.89% | -6.61% | -6.46% | -6.44% | -6.66% | -6.82% | -7.20% | -7.53% | -7.58% | -7.72% | -7.79% | -7.80% | -7.83% | -7.69% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $-58,699K ÷ $676,944K
= -8.67%
MGE Energy Inc's gross profit margin has shown a declining trend over the past few years based on the provided data. Starting at -7.69% as of March 31, 2020, the margin has gradually decreased to -8.67% by December 31, 2024. This indicates that the company's cost of goods sold relative to its revenue has been increasing, leading to a lower percentage of revenue retained as gross profit.
The fluctuation in the gross profit margin over time suggests potential challenges in managing production costs or pricing strategies. It may be important for MGE Energy Inc to analyze the factors contributing to this decline and take corrective actions to improve efficiency and profitability. Monitoring and addressing this trend is crucial for the company's financial health and long-term sustainability.