Ziff Davis Inc (ZD)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 41,503 | 63,757 | 496,714 | 150,668 | 218,806 |
| Revenue | US$ in thousands | 1,364,030 | 1,391,000 | 1,416,720 | 1,158,830 | 1,050,460 |
| Net profit margin | 3.04% | 4.58% | 35.06% | 13.00% | 20.83% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $41,503K ÷ $1,364,030K
= 3.04%
The net profit margin of Ziff Davis Inc has fluctuated over the past five years, ranging from a high of 35.04% in 2021 to a low of 3.04% in 2023. A higher net profit margin indicates that the company is able to generate more profit from its revenue after accounting for all expenses, while a lower margin suggests lower profitability relative to revenue.
The significant decrease in net profit margin from 35.04% in 2021 to 3.04% in 2023 could indicate a decline in profitability efficiency. It is important for Ziff Davis Inc to analyze the reasons behind this decline and consider implementing strategies to improve profitability going forward.
The fluctuations in net profit margin over the years may be attributed to various factors such as changes in operating expenses, cost of goods sold, revenue growth, or one-time events impacting the bottom line. Further analysis of the company's financial performance and operations would provide more insights into the factors influencing the net profit margin trend.