Semtech Corporation (SMTC)
Profitability ratios
Return on sales
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 50.21% | 34.10% | 38.36% | 63.26% | 62.71% |
| Operating profit margin | 5.49% | -108.70% | -122.28% | 12.27% | 12.16% |
| Pretax margin | -20.22% | -119.89% | -134.87% | 10.37% | 10.32% |
| Net profit margin | -17.80% | -125.70% | -141.41% | 8.11% | 8.04% |
Semtech Corporation's profitability ratios have shown fluctuations over the years. The gross profit margin has decreased from 63.26% in January 2023 to 34.10% in January 2024, but then improved to 50.21% in January 2025. This indicates variability in the company's ability to generate profits after deducting the cost of goods sold.
On the other hand, the operating profit margin experienced significant negative values in January 2024, indicating operational inefficiencies or losses during that period. However, it recovered to 5.49% in January 2025, showing a return to positive operating profitability.
The pretax margin also displayed negative values in January 2024, signaling challenges in generating profits before accounting for taxes. While it improved in January 2025, it remained negative at -20.22%, indicating that Semtech Corporation continues to face profitability issues.
Similarly, the net profit margin was negative in January 2024 and January 2025, showing that the company experienced net losses after accounting for all expenses, including taxes. These negative values suggest that Semtech Corporation struggled to achieve profitability during these periods.
Overall, Semtech Corporation's profitability ratios reveal a mix of performance outcomes over the years, indicating fluctuations in the company's ability to generate profits at different stages. Further analysis and understanding of the factors contributing to these fluctuations would be necessary to assess the company's overall financial health and performance.
Return on investment
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.52% | -68.74% | -68.74% | 3.61% | 3.61% |
| Return on assets (ROA) | -11.41% | -79.49% | -79.49% | 2.39% | 2.39% |
| Return on total capital | 13.07% | — | -88.91% | 12.43% | 4.69% |
| Return on equity (ROE) | -29.85% | — | — | 8.12% | 8.12% |
Semtech Corporation's profitability ratios exhibit significant fluctuation over the period indicated in the data.
- The Operating return on assets (Operating ROA) remained relatively consistent at around 3.61% for the fiscal years ending January 29, 2023, and January 31, 2023. However, it decreased sharply to -68.74% for the following fiscal years but then rebounded to 3.52% by January 31, 2025.
- Return on assets (ROA) also followed a similar pattern, with levels at 2.39% in the initial years. It then declined drastically to -79.49% by January 28, 2024, before improving slightly to -11.41% on January 31, 2025.
- The Return on total capital ratio displayed notable variation, with values at 4.69% on January 29, 2023, peaked at 12.43% on January 31, 2023, plummeted to -88.91% by January 28, 2024, and eventually recovered to 13.07% on January 31, 2025.
- Return on equity (ROE) metrics showed a more stable trend, with 8.12% for the fiscal years ending January 29, 2023, and January 31, 2023. This ratio was not reported for the later years of January 28, 2024, and January 31, 2024. However, by January 31, 2025, it declined sharply to -29.85%.
Overall, Semtech Corporation's profitability ratios indicate volatility and inconsistency in its financial performance over the period under review. It is essential for stakeholders to closely monitor these ratios to assess the company's profitability and financial health accurately.