Cognex Corporation (CGNX)

Operating 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
Operating income (ttm)	US$ in thousands	130,702	172,310	181,696	181,662	246,229	248,412	295,936	323,376	315,101	317,666	326,754	228,031	170,529	129,051	75,508	133,406	142,602	142,602	142,602	142,602
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
Operating profit margin		15.84%	19.76%	20.38%	19.67%	24.52%	24.69%	27.33%	29.98%	30.45%	31.32%	33.22%	25.78%	21.03%	17.05%	11.01%	18.65%	19.68%	19.06%	13.84%	13.68%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $130,702K ÷ $824,931K
= 15.84%

The operating profit margin of Cognex Corp. has shown a declining trend over the last three quarters, dropping from 22.07% in Q1 2023 to 14.65% in Q4 2023. This downward trend may indicate decreasing efficiency in converting revenue into operating profit. However, it is important to note that the operating profit margin was relatively stable in the previous quarters of 2022, ranging from 26.59% to 29.93%.

This decline in operating profit margin could be a cause for concern as it may suggest that the company's operating expenses are growing at a faster rate than its revenue. Management should closely monitor cost management strategies and operational efficiency to improve the operating profit margin and ensure sustainable profitability in the future.