Sanmina Corporation (SANM)

Gross profit margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Gross profit	US$ in thousands	743,211	622,206	526,441	525,707	591,938
Revenue	US$ in thousands	8,898,760	7,890,480	6,756,640	6,960,370	8,233,860
Gross profit margin		8.35%	7.89%	7.79%	7.55%	7.19%

September 30, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $743,211K ÷ $8,898,760K
= 8.35%

The gross profit margin of Sanmina Corp has shown a consistent upward trend over the past five years. In the most recent fiscal year ending Sep 30, 2023, the gross profit margin reached 8.32%, representing an improvement from 8.12% in the previous year, Oct 1, 2022. This indicates that the company has become more efficient in generating profits from its sales.

Comparing the gross profit margin of Sep 30, 2023, to that of Sep 28, 2019, a notable increase of 1.13 percentage points is observed, demonstrating a positive trend in the company's ability to control the cost of goods sold.

A higher gross profit margin signifies that the company is effectively managing its production costs and pricing strategies. However, it's essential to consider other factors that could impact the gross profit margin, such as changes in pricing, cost of raw materials, and operating inefficiencies.

Overall, Sanmina Corp's increasing gross profit margin over the years reflects improvements in its cost management and pricing strategies, which bodes well for the company's profitability and financial performance.