MaxLinear Inc (MXL)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-245,198	-73,147	125,040	41,969	-98,593
Revenue	US$ in thousands	360,528	693,263	1,120,250	892,398	478,596
Net profit margin		-68.01%	-10.55%	11.16%	4.70%	-20.60%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $-245,198K ÷ $360,528K
= -68.01%

Net profit margin is a key profitability metric that indicates the percentage of revenue that translates into profit after accounting for all expenses. Analyzing MaxLinear Inc's net profit margin over the past five years reveals fluctuations in the company's profitability.

Starting in December 31, 2020, MaxLinear Inc experienced a negative net profit margin of -20.60%, indicating that the company's expenses exceeded its revenue, leading to a loss for that period. However, the company's profitability improved significantly by December 31, 2021, with a net profit margin of 4.70%, indicating that the company was able to generate a profit equivalent to 4.70% of its revenue.

In December 31, 2022, MaxLinear Inc's net profit margin further increased to 11.16%, showcasing continued improvement in profitability. However, the trend reversed in December 31, 2023, as the company's net profit margin declined to -10.55%, indicating that expenses outweighed revenue, resulting in a negative profit margin.

The most significant decrease in profitability occurred by December 31, 2024, with a drastic net profit margin of -68.01%. This sharp decline suggests that MaxLinear Inc's expenses substantially exceeded its revenue, leading to a substantial loss for that period.

Overall, fluctuations in MaxLinear Inc's net profit margin indicate varying levels of profitability over the past five years, with improvements followed by significant declines. It is essential for the company to closely monitor and manage its expenses to ensure sustainable profitability in the future.