Select Medical Holdings (SEM)
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 | 475,493 | 846,758 | 882,765 | 926,010 | 932,041 | 892,943 | 843,735 | 787,001 | 733,377 | 717,946 | 780,508 | 858,889 | 919,366 | 976,025 | 982,404 | 860,094 | 821,341 | 806,376 | 773,690 | 834,642 |
| Revenue (ttm) | US$ in thousands | 5,187,103 | 6,968,550 | 6,873,020 | 6,787,890 | 6,664,060 | 6,586,660 | 6,488,760 | 6,398,970 | 6,333,540 | 6,311,890 | 6,278,320 | 6,257,600 | 6,204,510 | 6,105,190 | 5,994,840 | 5,663,540 | 5,531,710 | 5,445,800 | 5,415,270 | 5,543,910 |
| Gross profit margin | 9.17% | 12.15% | 12.84% | 13.64% | 13.99% | 13.56% | 13.00% | 12.30% | 11.58% | 11.37% | 12.43% | 13.73% | 14.82% | 15.99% | 16.39% | 15.19% | 14.85% | 14.81% | 14.29% | 15.06% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $475,493K ÷ $5,187,103K
= 9.17%
The gross profit margin of Select Medical Holdings has shown fluctuations over the reported periods. It started at 15.06% in March 2020 and experienced marginal changes until June 2021, where it peaked at 16.39%. However, in the subsequent quarters, the gross profit margin declined gradually to 9.17% by December 2024.
The declining trend observed after June 2021 could indicate challenges in managing production costs, pricing strategies, or competitive pressures. This decrease in gross profit margin may raise concerns about the company's ability to maintain profitability and efficiently manage its cost structure.
Management should closely monitor the trends in gross profit margin, identify the underlying factors contributing to the decline, and implement strategies to improve operational efficiency and cost control to ensure sustainable profitability in the long term.
Peer comparison
Dec 31, 2024