Cognex Corporation (CGNX)

Net profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	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	203,865	203,865	203,865	203,865
Revenue (ttm)	US$ in thousands	824,931	871,996	891,741	923,419	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	724,470	747,987	1,030,020	1,042,097
Net profit margin		13.73%	18.04%	19.33%	18.82%	21.46%	21.24%	23.89%	25.71%	27.05%	29.15%	30.94%	25.50%	21.73%	24.73%	20.62%	26.74%	28.14%	27.26%	19.79%	19.56%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $113,234K ÷ $824,931K
= 13.73%

In analyzing Cognex Corp.'s net profit margin over the past eight quarters, we observe a decreasing trend during the period. The net profit margin declined from 25.67% in Q1 2022 to 13.52% in Q4 2023. This indicates that the company's profitability has been decreasing over time.

The net profit margin peaked at 25.67% in Q1 2022 and has been on a downward trajectory since then. The most significant decline was observed between Q2 2022 and Q3 2022, where the margin dropped from 23.82% to 21.15%.

Despite the fluctuations, Cognex Corp. has maintained its net profit margin above 10% throughout the period, indicating that the company has been able to generate profits relative to its revenue. However, the decreasing trend suggests that management may need to closely monitor and address factors impacting profitability to ensure sustainable financial performance in the future.