Materion Corporation (MTRN)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,888 | 95,702 | 85,990 | 72,474 | 15,462 |
| Revenue | US$ in thousands | 1,648,800 | 1,633,630 | 1,735,870 | 1,504,450 | 1,174,500 |
| Net profit margin | 0.36% | 5.86% | 4.95% | 4.82% | 1.32% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $5,888K ÷ $1,648,800K
= 0.36%
The net profit margin of Materion Corporation has shown fluctuations over the past five years, as reflected in the financial data. In December 2020, the net profit margin was 1.32%, indicating that for every dollar of revenue generated, the company retained $0.0132 as profit.
Subsequently, there was a significant improvement in profitability, with the net profit margin increasing to 4.82% by December 2021 and further to 4.95% by December 2022. This upward trend suggests that the company became more efficient in managing its expenses and generating profits relative to its revenues during these years.
In December 2023, the net profit margin experienced another notable increase, reaching 5.86%. This indicates that Materion Corporation was able to further enhance its profitability and potentially optimize its operations to generate higher earnings per dollar of revenue.
However, there was a significant decline in the net profit margin to 0.36% by December 2024, which may raise concerns about the company's ability to maintain profitability levels. It is essential for Materion Corporation to investigate and address the factors contributing to this drop in profitability to sustain long-term financial health and operational efficiency.