IPG Photonics Corporation (IPGP)

Gross 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
Gross profit (ttm)	US$ in thousands	352,164	376,537	455,350	492,846	542,248	488,355	505,877	530,530	555,413	660,594	696,044	704,228	696,398	677,272	644,190	600,111	538,996	516,320	516,386	560,174
Revenue (ttm)	US$ in thousands	977,134	1,041,690	1,109,948	1,192,274	1,287,439	1,322,085	1,369,690	1,406,742	1,429,547	1,460,475	1,490,619	1,485,254	1,460,860	1,433,023	1,372,314	1,297,067	1,200,724	1,170,721	1,181,418	1,248,776
Gross profit margin		36.04%	36.15%	41.02%	41.34%	42.12%	36.94%	36.93%	37.71%	38.85%	45.23%	46.69%	47.41%	47.67%	47.26%	46.94%	46.27%	44.89%	44.10%	43.71%	44.86%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $352,164K ÷ $977,134K
= 36.04%

The gross profit margin of IPG Photonics Corporation displays some fluctuations over the period from March 31, 2020, to December 31, 2024. The margin started at 44.86% in March 2020, showing a slight decrease to 43.71% in June 2020 before rebounding to 44.10% in September 2020. Subsequently, there was a gradual increase in the gross profit margin reaching 47.67% by December 31, 2021.

However, starting from March 31, 2022, the gross profit margin began to decline. It dropped to 36.15% by September 30, 2024, marking a significant decrease compared to the previous periods. This decline could be attributed to various factors such as changes in pricing strategies, cost of goods sold, or other operational inefficiencies within the company.

Overall, it is essential for IPG Photonics Corporation to closely monitor and analyze the factors impacting its gross profit margin to make necessary adjustments and ensure sustainable profitability in the future.