Simulations Plus Inc (SLP)

Gross profit margin

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Gross profit	US$ in thousands	47,947	43,084	35,866	30,940	24,944
Revenue	US$ in thousands	59,577	53,906	46,466	41,589	33,970
Gross profit margin		80.48%	79.92%	77.19%	74.39%	73.43%

August 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $47,947K ÷ $59,577K
= 80.48%

The gross profit margin of Simulations Plus Inc. has shown a consistent upward trend over the past five years, reflecting a positive trajectory in the company's ability to generate profits from its core business activities. The margin stood at 73.43% in 2019 and has since experienced steady growth, reaching 80.48% by August 31, 2023. This indicates an improvement in the company's efficiency in producing goods and services, as well as in managing production and distribution costs. The consistent expansion of the gross profit margin demonstrates the company's ability to maintain strong pricing power and effectively control its cost structure. Overall, these trends suggest that Simulations Plus Inc. has been effectively managing its operational costs while maintaining strong revenue generation, ultimately leading to improved profitability.