FormFactor Inc (FORM)

Operating 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
Operating income (ttm)	US$ in thousands	43,978	44,445	29,297	10,744	9,803	-14,459	-6,965	27,574	61,667	109,402	122,454	109,577	98,038	87,076	85,860	88,003	83,788	86,678	73,976	60,478
Revenue (ttm)	US$ in thousands	763,599	742,279	705,937	664,379	663,102	660,926	670,220	718,211	747,937	786,948	796,043	780,212	769,674	761,719	749,751	719,499	693,616	675,202	637,810	618,004
Operating profit margin		5.76%	5.99%	4.15%	1.62%	1.48%	-2.19%	-1.04%	3.84%	8.24%	13.90%	15.38%	14.04%	12.74%	11.43%	11.45%	12.23%	12.08%	12.84%	11.60%	9.79%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $43,978K ÷ $763,599K
= 5.76%

FormFactor Inc's operating profit margin has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The operating profit margin started at 9.79% in March 2020 and increased gradually to reach its peak at 15.38% in June 2022. This represented a positive trend indicating improved efficiency in generating profits from operations.

However, the operating profit margin declined thereafter, dropping to 1.62% in March 2024. This decline may suggest challenges in managing operating expenses or generating sufficient revenues to cover costs. The margin showed a slight recovery in the subsequent quarters, with a slight improvement to 5.76% by December 2024.

The drop in the operating profit margin in the later quarters of the analysis period may be a cause for concern as it indicates a potential decrease in profitability relative to revenue. Management should monitor and address the factors influencing the margin to ensure sustainable profitability and operational efficiency in the future.