Semtech Corporation (SMTC)

Operating profit margin

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Operating income	US$ in thousands	49,900	-944,322	-944,322	92,799	92,799
Revenue	US$ in thousands	909,287	868,758	772,240	756,533	763,171
Operating profit margin		5.49%	-108.70%	-122.28%	12.27%	12.16%

January 31, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $49,900K ÷ $909,287K
= 5.49%

The operating profit margin of Semtech Corporation has shown some variability over the past few years. In January 2023, it stood at 12.16%, slightly increasing to 12.27% by January 2023. However, in January 2024, there was a significant decline with the operating profit margin dropping to -122.28% and further decreasing to -108.70% by the end of that year. This negative operating profit margin indicates that the company's operating expenses exceeded its gross profit, resulting in a loss from operations. Fortunately, by January 2025, the operating profit margin improved to 5.49%, showing a positive trend in profitability. It is important for Semtech Corporation to closely monitor and manage its operating expenses to ensure sustainable profitability in the future.