IPG Photonics Corporation (IPGP)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-181,526	218,878	109,909	278,416	159,572
Revenue	US$ in thousands	977,134	1,287,440	1,429,550	1,460,860	1,200,720
Net profit margin		-18.58%	17.00%	7.69%	19.06%	13.29%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $-181,526K ÷ $977,134K
= -18.58%

Net profit margin is a crucial financial ratio that indicates the percentage of revenue that translates into profit after all expenses are deducted. In analyzing IPG Photonics Corporation's net profit margin over the past five years, we observe varying levels of profitability.

- In December 31, 2020, the company achieved a net profit margin of 13.29%, indicating that for every dollar of revenue generated, the company retained $0.1329 as profit.

- Over the following years, there was a notable improvement in profitability as the net profit margin increased to 19.06% by December 31, 2021, reflecting enhanced efficiency in cost management and revenue generation.

- However, by December 31, 2022, the net profit margin declined to 7.69%, suggesting potential challenges or increased expenses that impacted profitability during that period.

- The company showed a strong recovery by December 31, 2023, with a net profit margin of 17.00%, indicating effective operational performance and financial management.

- Notably, by December 31, 2024, the net profit margin drastically declined to -18.58%, signaling that the company incurred a net loss during that period. This negative net profit margin raises concerns about the company's ability to control costs and generate sustainable profits.

In summary, while IPG Photonics Corporation demonstrated fluctuations in net profit margin over the analyzed period, indicating both strengths and challenges in its financial performance, sustained monitoring and strategic adjustments may be necessary to enhance profitability and ensure long-term success.