Cognex Corporation (CGNX)

Net 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
Net income (ttm)	US$ in thousands	106,171	89,054	78,379	99,641	113,234	157,316	172,380	173,807	215,525	213,749	258,669	277,366	279,881	295,691	304,297	225,557	176,186	187,168	141,347	191,238
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
Net profit margin		11.59%	10.11%	9.41%	11.94%	13.72%	18.03%	19.32%	18.81%	21.46%	21.24%	23.89%	25.71%	27.05%	29.15%	30.94%	25.50%	21.73%	24.73%	20.62%	26.74%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $106,171K ÷ $915,950K
= 11.59%

Net profit margin, a key profitability ratio, indicates the percentage of revenue that translates into profits after accounting for all expenses. Looking at the historical trend for Cognex Corporation, we observe fluctuations in its net profit margin over the past years.

The net profit margin started strong at 26.74% in March 2020, demonstrating the company's ability to effectively manage costs and generate profit. Despite a slight decrease to 20.62% in June 2020, the margin rebounded to 24.73% in September 2020, showing resilience.

The margin experienced some volatility throughout the subsequent quarters but generally remained above 20% until December 2022. However, a notable decline was observed in the following periods, with the net profit margin dropping to 13.72% in December 2023 and further to 9.41% in June 2024.

These decreasing trends suggest that Cognex Corporation may be facing challenges in controlling costs or experiencing pressures on its revenue streams. Monitoring and addressing these issues will be crucial for the company to sustain profitability and ensure long-term financial health.