Plexus Corp (PLXS)

Net profit margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	139,094	138,243	138,912	117,479	108,616
Revenue	US$ in thousands	8,496,620	7,722,450	6,834,190	6,875,610	6,448,530
Net profit margin		1.64%	1.79%	2.03%	1.71%	1.68%

September 30, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $139,094K ÷ $8,496,620K
= 1.64%

Plexus Corp.'s net profit margin measures the company's profitability by indicating how much of each dollar of revenue translates into profit after all expenses are accounted for. The trend of Plexus Corp.'s net profit margin from 2019 to 2023 shows a fluctuating pattern, with a peak at 4.12% in 2021, followed by a slight decrease to 3.47% in 2020, and further declining to 3.30% in 2023.

The decrease in net profit margin could indicate various factors such as increasing operating expenses, declining gross margins, or declining revenue growth. It is essential for investors and management to further investigate the reasons behind the declining trend in net profit margin. Additionally, comparative analysis of the industry benchmarks and peer companies would provide insights into Plexus Corp.'s performance relative to its competitors.

Overall, the declining trend in net profit margin may prompt management to re-evaluate cost structures, pricing strategies, and operational efficiencies to maintain and improve profitability in the coming periods.