Veracyte Inc (VCYT)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 16,142 -85,795 -41,081 -81,903 -35,389
Revenue US$ in thousands 445,764 361,051 296,536 219,514 117,483
Operating profit margin 3.62% -23.76% -13.85% -37.31% -30.12%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $16,142K ÷ $445,764K
= 3.62%

The operating profit margin of Veracyte Inc has demonstrated significant fluctuations over the observed period from December 31, 2020, to December 31, 2024. In 2020, the company reported an operating profit margin of -30.12%, indicating a substantial operating loss relative to its revenue. This negative margin worsened in 2021, reaching -37.31%, which suggests an increasing operating difficulty or higher operating costs relative to revenue.

However, in 2022, there was a notable improvement, with the operating profit margin narrowing to -13.85%. This marked a positive trend toward reducing operating losses, potentially reflecting operational efficiencies, revenue growth, or cost management improvements. Despite this progress, the margin remained negative, signaling continued operating challenges.

In 2023, the operating profit margin declined again to -23.76%, indicating a setback as the margin deteriorated relative to the previous year, possibly due to increased operating costs, lower revenues, or a combination of both factors.

The most remarkable change occurs in 2024, when the operating profit margin shifts to a positive value of 3.62%. This transition from negative to positive indicates that Veracyte Inc achieved an operating profit in that year, reflecting a fundamental improvement in operational performance and cost management efficiency. This positive margin suggests that the company moved from an operating loss position to an operating profit, which could have significant implications for its overall financial health and future profitability prospects.

Overall, the trend from 2020 to 2024 shows a trajectory of initial operating losses, a period of gradual improvement, and ultimately a move into positive operating territory, highlighting a potential turnaround in operational efficiency and profitability.