Merit Medical Systems Inc (MMSI)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	583,872	519,099	485,333	401,177	432,366
Revenue	US$ in thousands	1,236,650	1,143,170	1,068,790	952,099	982,685
Gross profit margin		47.21%	45.41%	45.41%	42.14%	44.00%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $583,872K ÷ $1,236,650K
= 47.21%

The gross profit margin of Merit Medical Systems, Inc. has shown a generally positive trend over the past five years. The margin increased from 43.46% in 2019 to 46.44% in 2023, indicating a consistent improvement in the company's ability to generate profit from its core operations. This uptrend is a positive sign of the company's efficiency in managing its production costs and pricing strategies.

In 2020, there was a slight dip in the gross profit margin to 41.62%, which could be a cause for concern, but the company quickly recovered and surpassed its previous margin in the following years. This demonstrates Merit Medical's resilience and adaptability in maintaining healthy profit margins even during challenging times.

Overall, the increasing trend in the gross profit margin reflects positively on the company's operational efficiency and ability to maintain profitability in its core business activities. Further analysis of the company's cost structure and pricing strategies could provide insights into how Merit Medical has successfully managed to improve its gross profit margin consistently over the years.