Simply Good Foods Co (SMPL)

Gross profit margin

		Aug 31, 2024	May 25, 2024	Feb 24, 2024	Nov 25, 2023	Aug 26, 2023	May 27, 2023	Feb 25, 2023	Nov 26, 2022	Aug 27, 2022	May 28, 2022	Feb 26, 2022	Nov 27, 2021	Aug 28, 2021	May 29, 2021	Feb 27, 2021	Nov 28, 2020	Aug 29, 2020	May 30, 2020	Feb 29, 2020	Nov 30, 2019
Gross profit (ttm)	US$ in thousands	511,566	486,064	471,684	457,546	453,420	434,805	434,207	439,998	445,561	448,183	450,538	432,280	409,766	393,411	361,034	356,163	324,328	295,399	263,430	227,691
Revenue (ttm)	US$ in thousands	1,331,588	1,252,300	1,239,906	1,221,199	1,212,260	1,167,626	1,162,029	1,166,378	1,146,988	1,130,420	1,094,438	1,025,803	974,051	944,406	883,763	887,277	816,641	733,539	657,906	554,605
Gross profit margin		38.42%	38.81%	38.04%	37.47%	37.40%	37.24%	37.37%	37.72%	38.85%	39.65%	41.17%	42.14%	42.07%	41.66%	40.85%	40.14%	39.71%	40.27%	40.04%	41.05%

August 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $511,566K ÷ $1,331,588K
= 38.42%

The gross profit margin of Simply Good Foods Co has exhibited some fluctuations over the past few years, ranging from a low of 37.24% in May 27, 2023, to a high of 42.14% in Feb 26, 2022. Overall, the trend has shown some volatility, with increases and decreases in the gross profit margin over the period.

In recent quarters, there has been a general downward trend in the gross profit margin, decreasing from 38.85% in Aug 27, 2022, to 38.42% in Aug 31, 2024. This may suggest potential challenges in managing production costs and maintaining profitability.

It is important for the company to closely monitor and manage its cost structure to improve the gross profit margin and ensure sustainable profitability in the future. Additionally, further analysis of the underlying factors influencing the fluctuations in the gross profit margin could provide insights into areas for improvement in the company's operations and financial performance.