Upbound Group Inc. (UPBD)
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 | 2,080,351 | 2,084,715 | 2,070,795 | 2,045,062 | 2,022,258 | 2,005,015 | 2,013,384 | 2,039,702 | 2,079,533 | 2,152,431 | 2,215,656 | 2,270,584 | 2,235,012 | 2,094,169 | 1,950,437 | 1,762,497 | 1,672,152 | 1,655,876 | 1,630,844 | 1,639,383 |
| Revenue (ttm) | US$ in thousands | 4,320,570 | 4,259,430 | 4,169,668 | 4,072,321 | 3,992,411 | 3,964,780 | 4,009,642 | 4,101,739 | 4,245,399 | 4,426,370 | 4,583,680 | 4,706,400 | 4,583,460 | 4,128,521 | 3,659,266 | 3,149,032 | 2,814,191 | 2,765,562 | 2,702,918 | 2,675,097 |
| Gross profit margin | 48.15% | 48.94% | 49.66% | 50.22% | 50.65% | 50.57% | 50.21% | 49.73% | 48.98% | 48.63% | 48.34% | 48.24% | 48.76% | 50.72% | 53.30% | 55.97% | 59.42% | 59.87% | 60.34% | 61.28% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,080,351K ÷ $4,320,570K
= 48.15%
Upbound Group Inc.'s gross profit margin has shown a declining trend over the past few years based on the provided data. Starting at a healthy level of 61.28% as of March 31, 2020, the gross profit margin gradually decreased to 48.15% by December 31, 2024. This indicates that the company's profitability from its core business operations has slightly weakened over the period.
The gross profit margin represents the percentage of revenue that exceeds the cost of goods sold. A higher gross profit margin is generally preferred as it indicates that a company is able to generate more profit from each sale after accounting for production costs. In contrast, a declining gross profit margin may raise concerns about the company's ability to control costs efficiently or maintain pricing power in the market.
For Upbound Group Inc., management may need to closely monitor and potentially take actions to address the declining trend in gross profit margin to ensure the company's long-term financial health and sustainability. This could involve strategies such as renegotiating supplier contracts, optimizing production processes, adjusting pricing strategies, or diversifying product offerings to improve profitability.
Peer comparison
Dec 31, 2024