Semtech Corporation (SMTC)

Operating profit margin

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Jan 28, 2024 Oct 31, 2023 Oct 29, 2023 Jul 31, 2023 Jul 30, 2023 Apr 30, 2023 Jan 31, 2023 Jan 29, 2023 Oct 31, 2022 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Apr 30, 2022 Jan 31, 2022 Jan 30, 2022
Operating income (ttm) US$ in thousands 52,165 33,571 -604,174 -624,315 -642,100 -944,815 -624,964 -623,875 -667,161 -422,711 -85,233 -36,580 83,116 185,827 195,510 201,105 180,032 170,404 160,012 153,708
Revenue (ttm) US$ in thousands 909,285 851,233 783,447 768,991 735,256 780,680 825,893 861,533 856,675 777,728 741,094 681,058 722,800 764,726 789,257 803,304 782,799 776,380 758,224 752,678
Operating profit margin 5.74% 3.94% -77.12% -81.19% -87.33% -121.02% -75.67% -72.41% -77.88% -54.35% -11.50% -5.37% 11.50% 24.30% 24.77% 25.03% 23.00% 21.95% 21.10% 20.42%

January 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $52,165K ÷ $909,285K
= 5.74%

The operating profit margin of Semtech Corporation has exhibited significant fluctuations over the past few years. Starting from a healthy level of around 20% in early 2022, the margin showed a generally increasing trend, reaching a peak of 25.03% by July 31, 2022. However, from January 29, 2023, the margin underwent a sharp decline, turning negative by April 30, 2023. The trend worsened, with the margin plunging to as low as -121.02% by January 28, 2024.

Subsequently, there was a partial recovery in the operating profit margin, which improved to 3.94% by October 31, 2024, and further increased to 5.74% by January 31, 2025. This recent uptrend indicates a possible turnaround in the profitability of the company. It is essential for stakeholders to monitor the operating profit margin closely to assess the company's ability to generate profits from its core operations effectively. Such analysis can provide valuable insights into the financial health and operational efficiency of Semtech Corporation.