Digi International Inc (DGII)

Net profit margin

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Net income	US$ in thousands	22,505	24,770	19,383	10,366	8,411
Revenue	US$ in thousands	424,046	444,849	388,225	308,632	279,271
Net profit margin		5.31%	5.57%	4.99%	3.36%	3.01%

September 30, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $22,505K ÷ $424,046K
= 5.31%

Over the past five years, Digi International Inc's net profit margin has shown a generally increasing trend from 3.01% in 2020 to 5.31% in 2024. This indicates an improvement in the company's ability to generate profit from its sales over the years. The company has managed to effectively control its expenses and improve operational efficiency, leading to a higher proportion of revenue translating into net income.

The slight dip in net profit margin from 2023 to 2024 (5.57% to 5.31%) suggests a potential challenge in maintaining or further increasing profitability. It would be important for Digi International Inc to closely monitor its cost structure and revenue streams to sustain or improve its profitability in the future. Overall, the gradual improvement in net profit margin demonstrates the company's sound financial management and profitability growth over the analyzed period.