Vestis Corporation (VSTS)
Gross profit margin
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 243,850 | 419,358 | 588,648 | 726,548 | 855,071 | 800,951 | 779,610 |
| Revenue (ttm) | US$ in thousands | 2,805,396 | 2,837,440 | 2,848,575 | 2,842,513 | 2,825,286 | 2,792,558 | 2,762,895 |
| Gross profit margin | 8.69% | 14.78% | 20.66% | 25.56% | 30.26% | 28.68% | 28.22% |
September 30, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $243,850K ÷ $2,805,396K
= 8.69%
Vestis Corporation's gross profit margin has shown a declining trend over the past few quarters, dropping from 30.26% in September 2023 to 8.69% in September 2024. This decrease indicates that the company's cost of goods sold has been increasing at a faster rate than its revenues, resulting in lower gross profits relative to its sales.
The declining gross profit margin could be a cause for concern as it may signal inefficiencies in the company's production processes, pricing strategies, or cost management practices. Vestis Corporation should closely examine its cost structure, pricing decisions, and sales performance to identify the root causes of the decreasing gross profit margin and take appropriate measures to address them.
Investors and stakeholders should monitor this trend closely as a sustained decline in gross profit margin could impact the company's overall profitability and financial health.
Peer comparison
Sep 30, 2024