Smart Global Holdings Inc (SGH)

Gross profit margin

		Mar 1, 2024	Dec 1, 2023	Aug 25, 2023	May 26, 2023	Feb 24, 2023	Nov 25, 2022	Aug 26, 2022	May 27, 2022	Feb 25, 2022	Nov 26, 2021	Aug 27, 2021	May 28, 2021	Feb 26, 2021	Nov 27, 2020	May 29, 2020	Feb 28, 2020	Nov 29, 2019	Aug 30, 2019	May 31, 2019	Mar 1, 2019
Gross profit (ttm)	US$ in thousands	356,849	385,923	415,171	418,006	418,171	401,459	391,045	344,012	327,854	287,014	237,974	244,820	211,839	212,703	212,351	201,153	206,778	237,527	267,914	302,933
Revenue (ttm)	US$ in thousands	1,233,638	1,360,769	1,552,734	1,598,535	1,700,746	1,758,024	1,764,196	1,888,093	1,862,989	1,718,489	1,559,283	1,371,659	1,193,744	1,160,383	1,134,618	1,092,825	1,123,015	1,259,316	1,354,886	1,462,059
Gross profit margin		28.93%	28.36%	26.74%	26.15%	24.59%	22.84%	22.17%	18.22%	17.60%	16.70%	15.26%	17.85%	17.75%	18.33%	18.72%	18.41%	18.41%	18.86%	19.77%	20.72%

March 1, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $356,849K ÷ $1,233,638K
= 28.93%

The gross profit margin of Smart Global Holdings Inc has shown a fluctuating trend over the past few years. There was a general upward trend from March 2019 to March 2022, with the margin increasing from 18.86% to 28.93%. However, since then, there has been some variability in the margin, with slight fluctuations observed in the most recent quarters.

It is important to note that the gross profit margin represents the proportion of revenue that exceeds the cost of goods sold, providing insight into the company's efficiency in managing production costs. The higher the margin, the better the company is at generating profits from its core operations.

Overall, Smart Global Holdings Inc has exhibited relatively healthy gross profit margins, with values consistently above 20% in recent years. This indicates that the company has been able to effectively control its production costs and generate profits from its goods and services. However, it is essential for investors and stakeholders to monitor any future trends in the gross profit margin to assess the company's operational performance and profitability.