Nextracker Inc. Class A Common Stock (NXT)

Operating profit margin

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Operating income (ttm)	US$ in thousands	639,112	714,479	712,715	673,332	587,118	357,026	267,216	212,596	168,485	135,480	93,924	74,531	65,907	99,912	124,388	145,841	158,532
Revenue (ttm)	US$ in thousands	2,959,197	2,771,370	2,802,433	2,740,219	2,499,841	2,281,721	2,084,665	1,978,450	1,902,137	1,823,555	1,647,792	1,519,349	1,457,592	1,322,607	1,289,828	1,240,884	1,195,617
Operating profit margin		21.60%	25.78%	25.43%	24.57%	23.49%	15.65%	12.82%	10.75%	8.86%	7.43%	5.70%	4.91%	4.52%	7.55%	9.64%	11.75%	13.26%

March 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $639,112K ÷ $2,959,197K
= 21.60%

Nextracker Inc. Class A Common Stock's operating profit margin has shown fluctuations over the past few years. From March 31, 2021, to September 30, 2022, the operating profit margin experienced a downward trend, decreasing from 13.26% to 5.70%. This decline may suggest challenges in controlling operating expenses relative to revenue during this period.

However, from March 31, 2023, onwards, there was a noticeable improvement in the operating profit margin, which increased steadily, reaching a peak of 25.78% by December 31, 2024. This upward trend indicates enhanced operational efficiency and/or effective cost management strategies implemented by Nextracker Inc.

The slight decline in the operating profit margin to 21.60% as of March 31, 2025, may be a point of interest for further analysis to understand the factors contributing to this change. Overall, the improving trend in the operating profit margin from 2023 to 2024 demonstrates the company's ability to generate more profit from its core business operations, which could be a positive sign for investors and stakeholders.