VeriSign Inc (VRSN)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,366,000 | 1,295,800 | 1,224,200 | 1,135,700 | 1,084,900 |
| Revenue | US$ in thousands | 1,557,400 | 1,493,100 | 1,424,900 | 1,327,600 | 1,265,100 |
| Gross profit margin | 87.71% | 86.79% | 85.91% | 85.55% | 85.76% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,366,000K ÷ $1,557,400K
= 87.71%
VeriSign Inc's gross profit margin has shown a steady increase over the five-year period from December 31, 2020, to December 31, 2024. Starting at 85.76% in 2020, the gross profit margin improved modestly to 85.91% by 2022, indicating effective cost management and pricing strategies. Notably, there was a more significant jump to 86.79% in 2023, followed by a substantial increase to 87.71% in 2024.
This upward trend in gross profit margin suggests that VeriSign Inc has been able to enhance its profitability by effectively controlling its production costs and maintaining pricing power. The consistent improvement in gross profit margin over the years reflects the company's ability to generate more revenue from each sale after accounting for direct costs of goods sold. This trend indicates operational efficiency and effective management of core business functions, which are positive indicators of financial health and sustainability.
Peer comparison
Dec 31, 2024