Semtech Corporation (SMTC)

Gross profit margin

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Jan 26, 2020
Gross profit	US$ in thousands	296,250	478,558	461,139	355,873	336,684
Revenue	US$ in thousands	772,240	763,171	735,908	589,413	538,320
Gross profit margin		38.36%	62.71%	62.66%	60.38%	62.54%

January 28, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $296,250K ÷ $772,240K
= 38.36%

The gross profit margin of Semtech Corporation has fluctuated over the past five years. In the most recent fiscal year ending on January 28, 2024, the gross profit margin decreased significantly to 38.36% compared to the previous year where it was 62.71%. This decline suggests that the company may be experiencing challenges in maintaining profitability at the gross profit level. In comparison to the two preceding years (62.66% in 2022 and 60.38% in 2021), the gross profit margin has shown some volatility. However, it is worth noting that the gross profit margin in 2020 was similar to 2023 at 62.54%.

Overall, based on the trend observed in the gross profit margin, there seems to be inconsistency in Semtech Corporation's ability to generate profits from its core operations. It would be important for the company to investigate the factors contributing to this fluctuation in order to make informed strategic decisions and improve its overall financial performance.