Penumbra Inc (PEN)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	14,012	90,954	-2,002	2,623	-19,257
Revenue	US$ in thousands	1,194,620	1,058,520	847,133	747,590	560,412
Net profit margin		1.17%	8.59%	-0.24%	0.35%	-3.44%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $14,012K ÷ $1,194,620K
= 1.17%

Net profit margin is a key financial ratio that indicates the percentage of revenue that translates into net income after all expenses have been deducted. Penumbra Inc's net profit margin has shown variability over the years based on the provided data. In December 31, 2020, the company experienced a net profit margin of -3.44%, indicating that expenses exceeded revenues during that period. However, by December 31, 2021, the net profit margin improved to 0.35%, signifying a positive turnaround in profitability. The following year, by December 31, 2022, the net profit margin deteriorated slightly to -0.24%, suggesting challenges in controlling costs or generating sufficient revenues.

By December 31, 2023, Penumbra Inc exhibited a noteworthy improvement in profitability, achieving a net profit margin of 8.59%. This substantial increase indicates effective cost management and revenue growth strategies. In December 31, 2024, the net profit margin remained positive at 1.17%, though lower than the peak in 2023, it still demonstrates the company's ability to generate profit relative to its revenue.

Overall, the fluctuation in Penumbra Inc's net profit margin over the years showcases the company's financial performance and management effectiveness in controlling costs and maximizing profitability.