Ichor Holdings Ltd (ICHR)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-7,640	-10,895	85,823	81,014	41,552
Revenue	US$ in thousands	849,040	811,120	1,280,070	1,096,920	914,236
Operating profit margin		-0.90%	-1.34%	6.70%	7.39%	4.54%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $-7,640K ÷ $849,040K
= -0.90%

Ichor Holdings Ltd's operating profit margin has shown some fluctuation over the past five years. The margin increased from 4.54% as of December 31, 2020, to 7.39% as of December 31, 2021, reflecting an improvement in the company's ability to generate profits from its core operations. However, in the following years, the operating profit margin declined to 6.70% as of December 31, 2022, and then turned negative, indicating that the company's operating expenses exceeded its revenues, resulting in operating losses. By December 31, 2024, the operating profit margin stood at -0.90%, signifying a continuing challenge for the company in maintaining profitability from its operations. The negative operating profit margins in the later years may raise concerns about the company's cost management and revenue generation strategies that need closer examination and potential adjustments to enhance overall financial performance.