Mercury Systems Inc (MRCY)
Gross profit margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 195,901 | 190,073 | 239,720 | 289,160 | 316,728 | 368,915 | 378,380 | 384,642 | 394,956 | 378,164 | 384,033 | 385,478 | 385,188 | 379,022 | 366,724 | 366,563 | 356,844 | 340,070 | 320,592 | 302,973 |
| Revenue (ttm) | US$ in thousands | 835,275 | 839,948 | 895,169 | 927,294 | 973,882 | 1,010,375 | 999,971 | 990,763 | 988,197 | 949,310 | 953,092 | 943,388 | 923,996 | 890,531 | 841,690 | 824,927 | 796,610 | 756,196 | 722,816 | 687,992 |
| Gross profit margin | 23.45% | 22.63% | 26.78% | 31.18% | 32.52% | 36.51% | 37.84% | 38.82% | 39.97% | 39.84% | 40.29% | 40.86% | 41.69% | 42.56% | 43.57% | 44.44% | 44.80% | 44.97% | 44.35% | 44.04% |
June 30, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $195,901K ÷ $835,275K
= 23.45%
The gross profit margin of Mercury Systems Inc has shown a decreasing trend over the last few quarters, starting at 44.97% in December 2019 and reaching 23.45% in June 2024. This indicates that the company's cost of goods sold relative to its revenue has been increasing, leading to a lower gross profit margin.
The significant drop in gross profit margin from 43.57% in March 2021 to 23.45% in June 2024 might raise concerns about the company's ability to effectively manage its production costs and maintain profitability. Management should closely monitor and assess the factors contributing to this decline and take corrective actions to improve the gross profit margin.
It is essential for Mercury Systems Inc to analyze its pricing strategy, production efficiency, and cost control measures to enhance its gross profit margin and ensure sustainable financial performance in the future.
Peer comparison
Jun 30, 2024