Silicon Laboratories Inc (SLAB)

Net profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	-190,993	-236,974	-198,122	-105,009	-34,516	60,632	71,283	82,462	91,402	62,943	2,118,644	2,099,115	2,089,717	2,101,763	-1,934	-46,637	-57,902	-57,135	-9,957	16,087
Revenue (ttm)	US$ in thousands	584,386	504,982	542,347	641,846	782,258	952,738	1,018,795	1,037,079	1,024,106	975,461	890,475	796,817	720,860	658,009	605,909	550,767	607,787	681,396	771,959	864,318
Net profit margin		-32.68%	-46.93%	-36.53%	-16.36%	-4.41%	6.36%	7.00%	7.95%	8.93%	6.45%	237.92%	263.44%	289.89%	319.41%	-0.32%	-8.47%	-9.53%	-8.38%	-1.29%	1.86%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $-190,993K ÷ $584,386K
= -32.68%

Net profit margin is a key financial metric that indicates the percentage of revenue that translates into net income after accounting for all expenses. Silicon Laboratories Inc's net profit margin showed significant fluctuations over the reported periods.

From March 31, 2020, to June 30, 2021, the company had negative net profit margins, indicating that its expenses exceeded its revenues during those periods. However, the trend shifted dramatically by September 30, 2021, with a substantial increase in the net profit margin to 319.41%, followed by consistently high margins exceeding 200% in subsequent quarters up to June 30, 2022.

There was a noticeable decline in net profit margin from June 30, 2022, to December 31, 2023, with margins ranging from 6.45% to -16.36%, reflecting fluctuations in profitability. Additionally, the net profit margin turned negative from December 31, 2023, reaching its lowest point of -46.93% on September 30, 2024.

The decreasing trend in the net profit margin from September 30, 2023, to December 31, 2024, indicates a decrease in profitability as expenses outpaced revenues during those periods. The final reported net profit margin of -32.68% on December 31, 2024, suggests that the company experienced challenges in converting its revenues into profit during the last quarter of the reporting period.