EchoStar Corporation (SATS)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 5,689,890 | 5,070,270 | 1,136,020 | 1,202,070 | 1,143,530 |
| Revenue | US$ in thousands | 15,825,500 | 17,015,600 | 1,998,090 | 1,985,720 | 1,887,910 |
| Gross profit margin | 35.95% | 29.80% | 56.86% | 60.54% | 60.57% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $5,689,890K ÷ $15,825,500K
= 35.95%
Based on the provided data, EchoStar Corporation's gross profit margin experienced a slight decline from 60.57% in December 2020 to 60.54% in December 2021. However, a more significant decrease occurred in the following years with margins dropping to 56.86% in December 2022, 29.80% in December 2023, and 35.95% in December 2024.
The declining trend in gross profit margin indicates that EchoStar Corporation's ability to generate profit from its core business operations has been weakening over the years. This could be attributed to various factors such as increasing production costs, pricing pressures, or inefficiencies in managing costs.
It is essential for EchoStar Corporation to closely monitor and address the factors contributing to the erosion of its gross profit margins to ensure long-term profitability and sustainability in the competitive market landscape. Implementing cost-saving measures, optimizing pricing strategies, and enhancing operational efficiency are some potential strategies that the company may consider to improve its gross profit margins in the future.
Peer comparison
Dec 31, 2024