Amkor Technology Inc (AMKR)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	354,012	359,813	765,823	642,995	338,138
Revenue	US$ in thousands	6,317,690	6,503,060	7,091,580	6,138,330	5,050,590
Net profit margin		5.60%	5.53%	10.80%	10.48%	6.70%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $354,012K ÷ $6,317,690K
= 5.60%

Net profit margin is a crucial financial metric that indicates the percentage of revenue that translates into profit after deducting all expenses. Analyzing the net profit margin trend of Amkor Technology Inc from 2020 to 2024 reveals fluctuations in profitability levels.

In 2020, the net profit margin stood at 6.70%, indicating that for every dollar of revenue generated, the company retained $0.067 as profit. Over the next two years, there was a positive trend as the net profit margin increased to 10.48% in 2021 and further to 10.80% in 2022. This improvement suggests better cost management or increased revenue generation relative to costs during this period.

However, the trend reversed in 2023 and 2024, with the net profit margin declining to 5.53% and 5.60%, respectively. This decrease may indicate challenges such as rising costs, declining sales prices, or other factors impacting profitability negatively.

Overall, while Amkor Technology Inc demonstrated a positive trend in profitability initially, the subsequent decline in net profit margin highlights the importance of continuous monitoring and analysis of financial performance to address underlying issues and sustain profitability in the long run.