Semtech Corporation (SMTC)

Net profit margin

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 25, 2020	Jul 26, 2020	Apr 26, 2020	Jan 26, 2020	Oct 27, 2019	Jul 28, 2019	Apr 28, 2019
Net income (ttm)	US$ in thousands	-1,092,030	-500,680	-439,684	-6,084	61,380	147,197	158,878	140,213	125,664	106,516	90,576	73,768	59,903	47,181	42,691	31,932	35,591	52,580	50,748	70,551
Revenue (ttm)	US$ in thousands	772,917	763,303	767,436	779,319	763,414	792,738	810,086	767,944	735,907	709,482	668,860	627,430	589,413	565,090	550,841	542,981	674,392	696,397	904,517	1,096,236
Net profit margin		-141.29%	-65.59%	-57.29%	-0.78%	8.04%	18.57%	19.61%	18.26%	17.08%	15.01%	13.54%	11.76%	10.16%	8.35%	7.75%	5.88%	5.28%	7.55%	5.61%	6.44%

January 28, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $-1,092,030K ÷ $772,917K
= -141.29%

Semtech Corporation's net profit margin has shown variability over the past several quarters. The company experienced a drastic decline in net profit margin, reaching -141.29% in the most recent quarter, indicating a significant loss exceeding its revenues. Prior to this quarter, there were negative net profit margins as well, with -65.59% and -57.29% in the two preceding quarters, reflecting periods of financial challenges.

However, prior to the negative trends, Semtech Corporation demonstrated relatively stable and positive net profit margins ranging from 5.28% to 19.61% over the previous quarters. The company exhibited a strong performance in generating profits relative to its revenue during these periods. It is noteworthy that the net profit margin peaked at 19.61% in the quarter ending July 31, 2022, indicating efficient cost management and revenue generation strategies.

In summary, the recent negative net profit margins highlight a concerning trend for Semtech Corporation, suggesting potential financial difficulties and the need for strategic adjustments to improve profitability and operational efficiency.