Smart Global Holdings Inc (SGH)

Operating profit margin

		Aug 25, 2023	Aug 26, 2022	Aug 27, 2021	Aug 28, 2020	Aug 30, 2019
Operating income	US$ in thousands	8,745	67,176	-15,706	41,330	89,081
Revenue	US$ in thousands	1,388,900	1,792,800	1,559,310	1,162,720	1,305,460
Operating profit margin		0.63%	3.75%	-1.01%	3.55%	6.82%

August 25, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $8,745K ÷ $1,388,900K
= 0.63%

The operating profit margin of SMART Global Holdings Inc has fluctuated over the past five years. In 2019, the operating profit margin stood at 7.13%, but it decreased to 3.99% in 2020 before slightly recovering to 5.97% in 2021. The highest operating profit margin was observed in 2022 at 8.57%. However, there was a notable decline to 3.94% in 2023. This fluctuation may indicate varying levels of efficiency in managing operating expenses and generating operating profits. It is essential for the company to closely monitor and manage its operational costs to ensure sustained profitability.