Strategic Education Inc (STRA)

Net 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
Net income (ttm) US$ in thousands 112,684 126,477 117,188 101,521 69,791 48,991 36,624 37,613 46,670 50,021 47,783 52,539 55,087 39,324 46,430 60,606 86,268 108,888 114,620 104,877
Revenue (ttm) US$ in thousands 1,219,930 1,211,176 1,191,154 1,166,568 1,132,924 1,100,160 1,077,347 1,063,231 1,065,480 1,067,641 1,074,596 1,100,205 1,131,686 1,127,081 1,096,029 1,052,687 1,027,653 1,023,931 1,026,652 1,015,931
Net profit margin 9.24% 10.44% 9.84% 8.70% 6.16% 4.45% 3.40% 3.54% 4.38% 4.69% 4.45% 4.78% 4.87% 3.49% 4.24% 5.76% 8.39% 10.63% 11.16% 10.32%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $112,684K ÷ $1,219,930K
= 9.24%

Net profit margin is a crucial financial metric that indicates the percentage of revenue that translates into profit for a company after accounting for all expenses. For Strategic Education Inc, the net profit margin has shown fluctuations over the analyzed period.

The net profit margin started at a healthy 10.32% in March 2020 but experienced a gradual decline, reaching its lowest point of 3.40% in June 2023. This decline may indicate increasing costs or operational inefficiencies impacting profitability during that period.

However, there was a gradual improvement in the net profit margin from June 2023 onwards, with the metric increasing to 9.84% by June 2024. This upward trend suggests the company may have implemented strategies to control costs, increase revenues, or enhance operational efficiency, resulting in improved profitability.

It is worth noting that the net profit margin saw some fluctuations in the latter half of 2024, settling at 9.24% by December 2024. Overall, monitoring the net profit margin is essential for evaluating Strategic Education Inc's ability to generate profits from its revenue and understanding the effectiveness of its cost management strategies.