Ichor Holdings Ltd (ICHR)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	103,334	103,396	211,864	177,480	124,892
Revenue	US$ in thousands	849,040	811,120	1,280,070	1,096,920	914,236
Gross profit margin		12.17%	12.75%	16.55%	16.18%	13.66%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $103,334K ÷ $849,040K
= 12.17%

To analyze Ichor Holdings Ltd's gross profit margin over the five-year period from December 31, 2020, to December 31, 2024, we observe the following trends:

1. The gross profit margin increased from 13.66% in December 2020 to 16.18% in December 2021, showing an improvement in the company's ability to generate profits from its core operations.

2. Subsequently, there was a slight uptick in the gross profit margin to 16.55% by December 2022, indicating further enhancement in the company's profitability.

3. However, there was a decline in the gross profit margin to 12.75% by December 2023, suggesting a decrease in the profitability of Ichor Holdings Ltd compared to the previous year.

4. This downward trend continued into December 2024, with the gross profit margin decreasing further to 12.17%, signifying ongoing challenges or changes in the company's cost structure or pricing strategy.

Overall, fluctuations in Ichor Holdings Ltd's gross profit margin over the five-year period indicate varying levels of profitability and efficiency in managing production costs. It is important for the company to address the factors contributing to the decrease in the gross profit margin to sustain and improve financial performance in the future.