IPG Photonics Corporation (IPGP)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands -208,254 231,566 293,306 367,883 198,659
Revenue US$ in thousands 977,134 1,287,440 1,429,550 1,460,860 1,200,720
Operating profit margin -21.31% 17.99% 20.52% 25.18% 16.54%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $-208,254K ÷ $977,134K
= -21.31%

The operating profit margin of IPG Photonics Corporation has exhibited some fluctuations over the past five years. In 2020, the operating profit margin stood at 16.54%, showing a steady increase to 25.18% by the end of 2021, indicating an improvement in operational efficiency and profitability. However, by the end of 2022, the operating profit margin slightly decreased to 20.52%, suggesting some challenges or changes in the company's operating environment.

Interestingly, by the end of 2023, the operating profit margin further declined to 17.99%, indicating potential issues impacting the company's ability to generate profits from its core operations. The most recent data point, by the end of 2024, reveals a significant negative operating profit margin of -21.31%, which is concerning and requires further investigation.

Overall, the trend in IPG Photonics Corporation's operating profit margin shows a mixture of positive and negative movements, highlighting the importance of closely monitoring and analyzing the company's financial performance to identify any underlying factors affecting its profitability.