Ichor Holdings Ltd (ICHR)

Net 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
Net income (ttm)	US$ in thousands	-20,820	-28,776	-36,425	-51,969	-42,985	-16,889	22,567	64,760	72,804	73,466	62,972	64,300	70,899	68,561	60,572	44,518	33,279	28,710	19,085	12,610
Revenue (ttm)	US$ in thousands	849,040	819,230	804,852	786,633	811,120	909,359	1,068,241	1,212,793	1,280,069	1,265,537	1,172,749	1,125,497	1,096,917	1,054,695	1,019,518	958,774	914,236	858,625	785,403	703,034
Net profit margin		-2.45%	-3.51%	-4.53%	-6.61%	-5.30%	-1.86%	2.11%	5.34%	5.69%	5.81%	5.37%	5.71%	6.46%	6.50%	5.94%	4.64%	3.64%	3.34%	2.43%	1.79%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $-20,820K ÷ $849,040K
= -2.45%

The net profit margin of Ichor Holdings Ltd has experienced fluctuations over the period from March 31, 2020, to December 31, 2024. The net profit margin measures the percentage of revenue that translates into profit after all expenses have been deducted.

Starting at a modest 1.79% in March 2020, the net profit margin gradually improved, reaching a peak of 6.50% in September 2021. This upward trend indicated that the company was effectively controlling costs and generating higher profits relative to its revenue.

However, the net profit margin began to decrease after September 2021, with a slight recovery in March 2022 before declining again. The margins fluctuated between 5.37% and -6.61% from June 2022 to June 2024, showing a lack of consistency in the company's profitability.

The negative net profit margins recorded from September 2023 to December 2024 are concerning as they indicate that the company's expenses exceeded its revenue during these periods. Such prolonged periods of negative net profit margins could raise questions about the company's financial health and sustainability.

Overall, a declining trend in net profit margins from the peak in September 2021, coupled with periods of negative margins, suggests that Ichor Holdings Ltd may be facing challenges in maintaining profitability and controlling costs efficiently. Further analysis of the company's operations and financial performance would be necessary to understand the underlying reasons for these fluctuations and to assess the company's prospects for future profitability.