Cognex Corporation (CGNX)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	625,794	602,979	586,354	599,438	601,241	635,761	645,226	662,028	721,905	727,324	774,221	778,462	759,827	753,299	745,495	663,546	604,599	561,042	505,403	534,706
Revenue (ttm)	US$ in thousands	915,950	880,891	832,846	834,652	825,325	872,390	892,135	923,813	1,004,258	1,006,206	1,082,805	1,078,739	1,034,795	1,014,415	983,583	884,497	810,787	756,941	685,541	715,295
Gross profit margin		68.32%	68.45%	70.40%	71.82%	72.85%	72.88%	72.32%	71.66%	71.88%	72.28%	71.50%	72.16%	73.43%	74.26%	75.79%	75.02%	74.57%	74.12%	73.72%	74.75%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $625,794K ÷ $915,950K
= 68.32%

The gross profit margin of Cognex Corporation has displayed some fluctuations over the past few years. It stood at a relatively high level of around 74-75% in the first half of 2021, indicating strong profitability from sales after deducting the cost of goods sold. However, there was a gradual decline in the gross profit margin in the following periods, dropping to around 68-72% by the end of 2024. This decrease suggests a potential increase in the cost of goods sold relative to sales revenue, which could impact the company's overall profitability and efficiency in generating gross profit. As such, it would be prudent for Cognex Corporation to closely monitor its cost structure and pricing strategies to maintain a healthy gross profit margin moving forward.