MACOM Technology Solutions Holdings Inc (MTSI)

Operating profit margin

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Operating income	US$ in thousands	73,666	107,400	132,674	81,002	3,388
Revenue	US$ in thousands	729,578	648,407	675,170	606,920	530,037
Operating profit margin		10.10%	16.56%	19.65%	13.35%	0.64%

September 30, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $73,666K ÷ $729,578K
= 10.10%

The operating profit margin of MACOM Technology Solutions Holdings Inc has shown fluctuating trends over the past five years. The margin was at its lowest in 2020 at 0.64% before experiencing a significant improvement in 2022 to 19.65%. However, there was a decline in the operating profit margin in 2023 to 16.56% and further decrease in 2024 to 10.10%.

The decreasing trend in the operating profit margin from 2022 to 2024 indicates that the company's operating expenses have been rising at a faster rate compared to its revenues. This could be a concern for investors as it signifies potential inefficiencies in cost management or declining profitability. Further analysis of the company's cost structure and revenue generation abilities would be beneficial in understanding the underlying reasons for these fluctuations in operating profit margin.