Ichor Holdings Ltd (ICHR)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -10,895 | 85,823 | 81,014 | 41,552 | 14,977 |
| Revenue | US$ in thousands | 791,741 | 1,269,010 | 1,089,730 | 905,509 | 610,190 |
| Operating profit margin | -1.38% | 6.76% | 7.43% | 4.59% | 2.45% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-10,895K ÷ $791,741K
= -1.38%
Ichor Holdings Ltd's operating profit margin has fluctuated over the past five years. The company experienced a decrease in operating profit margin from 7.43% in 2021 to 6.76% in 2022, followed by a further decline to -1.38% in 2023. This negative operating profit margin in 2023 indicates that the company's operating expenses exceeded its operating income, leading to a loss in profitability at the operating level.
Comparing the recent performance to earlier years, Ichor Holdings Ltd had shown a steady improvement in operating profit margin from 2.45% in 2019 to 4.59% in 2020 and further to 7.43% in 2021. However, the subsequent decline in 2022 and 2023 raises concerns about the company's operational efficiency and cost management.
It is crucial for Ichor Holdings Ltd to closely monitor and control its operating expenses to improve its operating profit margin and overall profitability in the future. Further analysis of the company's cost structure and revenue generation capabilities may be necessary to address the recent decline in operating profit margin effectively.
Peer comparison
Dec 31, 2023