Semtech Corporation (SMTC)

Profitability ratios

Return on sales

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
Gross profit margin 50.43% 48.97% 37.71% 36.80% 37.62% 36.67% 46.91% 46.12% 46.85% 51.51% 55.92% 62.56% 64.33% 64.62% 64.60% 64.41% 63.71% 63.53% 63.09% 62.67%
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%
Pretax margin -20.24% -98.17% -188.63% -175.59% -186.14% -134.27% -88.14% -83.71% -86.70% -61.38% -16.58% -9.10% 8.50% 21.92% 23.39% 24.49% 22.30% 21.19% 20.35% 19.71%
Net profit margin -17.81% -99.08% -188.68% -175.05% -185.14% -141.01% -101.77% -96.53% -98.57% -66.02% -14.67% -8.30% 6.37% 17.67% 19.06% 20.23% 18.61% 18.30% 18.06% 17.95%

Semtech Corporation's profitability ratios show a declining trend over the past few years. The gross profit margin has been relatively stable around 60-65% until the most recent period where it dropped to 50%. The operating profit margin has also been consistent but turned negative, indicating operating losses in recent periods. The pretax margin followed a similar pattern, showing profitability in earlier periods but turning sharply negative in recent years. The net profit margin, reflecting the bottom-line performance, has also deteriorated significantly, going into deep negative territory in the last few periods. Overall, Semtech Corporation's profitability has been under pressure with declining margins and increasing losses in recent years.


Return on investment

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 return on assets (Operating ROA) 3.68% 2.43% -44.16% -45.35% -46.74% -68.78% -30.66% -30.61% -31.49% -19.95% -3.41% -1.42% 3.23% 12.67% 13.33% 16.76% 16.13% 15.27% 14.15% 13.59%
Return on assets (ROA) -11.41% -61.16% -108.05% -97.79% -99.09% -80.14% -41.24% -40.81% -39.86% -24.23% -4.35% -2.20% 1.79% 9.21% 10.26% 13.54% 13.06% 12.73% 12.11% 11.95%
Return on total capital -14.92% -88.25% -185.11% -36.58% -181.00% -24.79% -11.27% -4.21% 4.11% 23.65% 15.74% 25.24% 19.63% 23.25% 21.76% 16.94%
Return on equity (ROE) -29.86% -251.45% -248.81% -230.19% -139.96% -14.83% -7.48% 6.10% 17.05% 18.99% 20.34% 19.82% 19.33% 18.57% 18.32%

Semtech Corporation's profitability ratios have shown significant fluctuations over the past few years.

- Operating return on assets (Operating ROA) has declined from a high of 16.76% in July 2022 to a low of -68.78% in January 2024, indicating a sharp downturn in the company's ability to generate profits from its assets.

- Return on assets (ROA) followed a similar trend, with a peak of 13.54% in July 2022 and a trough of -108.05% in July 2024, reflecting a substantial decrease in the company's overall profitability relative to its total assets.

- Return on total capital reached a peak of 25.24% in July 2022 but experienced drastic declines in subsequent periods, with negative figures recorded from January 2023 to January 2025. This suggests that Semtech Corporation struggled to generate returns on its total invested capital during these periods.

- Return on equity (ROE) also exhibited a downward trajectory, with the highest figure of 20.34% in July 2022 falling to -251.45% in October 2023, highlighting challenges in delivering returns to shareholders.

Overall, the profitability ratios of Semtech Corporation have shown volatility and deterioration over time, indicating potential financial challenges and a need for strategic improvements to enhance profitability and value creation for investors.