Semtech Corporation (SMTC)

Gross profit margin

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Gross profit	US$ in thousands	456,528	296,250	296,250	478,558	478,558
Revenue	US$ in thousands	909,287	868,758	772,240	756,533	763,171
Gross profit margin		50.21%	34.10%	38.36%	63.26%	62.71%

January 31, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $456,528K ÷ $909,287K
= 50.21%

The gross profit margin of Semtech Corporation has exhibited fluctuations over the past few years. As of January 29, 2023, the gross profit margin stood at 62.71%, showing a strong profitability level. However, there was a slight increase reported in the following year, with a gross profit margin of 63.26% as of January 31, 2023.

In the subsequent years, there was a noticeable decline in the gross profit margin. By January 28, 2024, the margin dropped to 38.36%, signifying a significant decrease in profitability. This reduction continued into the next year, as of January 31, 2024, when the gross profit margin further decreased to 34.10%.

However, there was a recovery in the gross profit margin by January 31, 2025, with a reported margin of 50.21%. This demonstrates an improvement compared to the previous year but is still below the levels seen in 2023.

Overall, the gross profit margin of Semtech Corporation has seen fluctuations, with periods of strong profitability followed by declines and subsequent recoveries. It is essential for the company to continue monitoring and managing its cost of goods sold to maintain and improve its gross profit margin in the future.