Bill(Bill) Financials: Gross Profit Margin Compared To Industry Average, Plus Other Key Ratios

Company Report for BILL

Report - gross profit margin

This chart shows the historical trend of gross profit margin for BILL compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Gross Profit Margin

Definition: Gross profit margin shows how much profit the company keeps from each dollar of sales after covering the direct cost of making its products or delivering services. High margins suggest strong pricing power or efficient production. Shrinking margins might mean rising costs or tougher competition eating into profits.

Interpretation:
• In '2021', BILL's gross profit margin was 74.1%, showing profitability after production and operational costs. Industry average for EDP Services in '2021' stood at 51.5%.
• In '2022', BILL's gross profit margin was 77.4%, showing profitability after production and operational costs. The increase since '2021' reflects strengthening financial performance. Industry average for EDP Services in '2022' stood at 43.5%. Industry average declined by 8.0% from previous year.
• In '2023', BILL's gross profit margin was 81.7%, showing profitability after production and operational costs. The increase since '2022' reflects strengthening financial performance. Industry average for EDP Services in '2023' stood at 48.7%. Industry average increased by 5.2% compared to previous year.
• In '2024', BILL's gross profit margin was 81.8%, showing profitability after production and operational costs. The increase since '2023' reflects strengthening financial performance. Industry average for EDP Services in '2024' stood at 47.9%. Industry average declined by 0.8% from previous year.
Overall, BILL's gross profit margin has steadily improved over the past 4 years.

Formula: Gross Profit Margin = (Revenue - COGS) / Revenue

Good Range: Often 20%-60% depending on industry.