Smart Global Holdings Inc (SGH)

Net profit margin is a crucial financial ratio that reveals the percentage of each dollar of revenue that translates into profit after all expenses are considered. Looking at the historical data for SMART Global Holdings Inc, the net profit margin has fluctuated significantly over the past five years.

In August 25, 2023, the net profit margin was -13.01%, indicating that the company incurred a net loss equivalent to 13.01% of its total revenue. This is a concerning figure, as it suggests that the company's expenses exceeded its revenue, resulting in a negative bottom line. This could be due to various factors such as high operating costs, declining sales, or one-time charges.

In contrast, on August 26, 2022, the net profit margin improved to 3.66%, reflecting a healthier financial performance compared to the previous year. This suggests that the company was able to increase its profitability by effectively managing its expenses relative to its revenue.

Similarly, on August 27, 2021, the net profit margin stood at 1.42%, indicating a positive but relatively modest level of profitability. However, the following year, on August 28, 2020, the net profit margin deteriorated to -0.10%, signaling a return to a negative bottom line. This reversal could indicate challenges in controlling costs or encountering difficulties in generating sufficient revenue.

Finally, in August 30, 2019, the net profit margin was 4.24%, showing a notable improvement in profitability compared to the preceding year. This positive trend may suggest effective cost management and an increase in revenue generation.

In summary, the fluctuation in SMART Global Holdings Inc's net profit margin over the past five years indicates varying levels of profitability and financial performance. It is essential for the company to analyze the underlying reasons for these fluctuations and implement strategies to sustainably improve its profitability in the future.

Peer comparison

Aug 25, 2023