Verra Mobility Corp (VRRM)

Gross profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Gross profit US$ in thousands 860,219 773,847 694,336 515,444 360,053
Revenue US$ in thousands 879,207 817,310 741,598 550,590 393,593
Gross profit margin 97.84% 94.68% 93.63% 93.62% 91.48%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $860,219K ÷ $879,207K
= 97.84%

The gross profit margin of Verra Mobility Corp has shown a consistent upward trend over the period from December 31, 2020, to December 31, 2024. Starting at 91.48% in 2020, the margin has steadily increased to 97.84% by the end of 2024. This improvement indicates the company's ability to control its production costs and generate higher revenues relative to its cost of goods sold. A rising gross profit margin is generally positive, as it suggests that the company is effectively managing its operations and pricing strategies. Verra Mobility Corp's increasing gross profit margin demonstrates its efficiency in generating profits from its core business activities.