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.