United Therapeutics Corporation (UTHR)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,070,000 | 1,784,700 | 1,563,000 | 1,375,200 | 1,331,200 |
| Revenue | US$ in thousands | 2,268,200 | 1,903,900 | 1,666,900 | 1,483,300 | 1,448,800 |
| Gross profit margin | 91.26% | 93.74% | 93.77% | 92.71% | 91.88% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,070,000K ÷ $2,268,200K
= 91.26%
United Therapeutics Corp's gross profit margin has shown a declining trend over the past five years, dropping from 91.88% in 2019 to 88.94% in 2023. This indicates that the company's cost of goods sold as a percentage of revenue has been increasing, which could be a concern as it may affect the company's overall profitability. However, it is important to note that United Therapeutics Corp still maintains a relatively high gross profit margin compared to industry standards, suggesting that the company is effectively managing its production costs but may need to address any cost increases to maintain its profitability in the future. A further analysis of the company's cost structure and pricing strategies may provide insights into the factors contributing to the declining trend in gross profit margin.
Peer comparison
Dec 31, 2023