IPG Photonics Corporation (IPGP)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	338,155	541,698	555,413	696,398	538,996
Revenue	US$ in thousands	977,134	1,287,440	1,429,550	1,460,860	1,200,720
Gross profit margin		34.61%	42.08%	38.85%	47.67%	44.89%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $338,155K ÷ $977,134K
= 34.61%

The gross profit margin of IPG Photonics Corporation has fluctuated over the past five years. In December 31, 2020, the gross profit margin stood at 44.89%, showing a steady performance. It then increased to 47.67% by December 31, 2021, indicating improved profitability. However, in the following year, by December 31, 2022, there was a notable decline in the gross profit margin to 38.85%, signaling potential challenges in maintaining cost efficiency.

By December 31, 2023, the gross profit margin showed a modest recovery, reaching 42.08%. Nonetheless, by the end of December 31, 2024, the gross profit margin experienced a significant drop to 34.61%, indicating a decline in profitability potentially due to increased cost pressures or pricing challenges.

Overall, the trend in the gross profit margin of IPG Photonics Corporation suggests some volatility in cost management and pricing strategies over the past five years, highlighting the need for continuous evaluation and strategic adjustments to maintain and improve profitability.