Teleflex Incorporated (TFX)

Net profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	69,675	237,436	263,572	294,869	356,328	403,812	368,567	362,746	363,139	412,629	509,915	487,649	485,374	433,426	350,832	279,040	335,324	367,458	479,800	551,719
Revenue (ttm)	US$ in thousands	3,047,324	3,025,824	3,007,838	3,001,406	2,974,489	2,958,576	2,898,975	2,860,258	2,791,041	2,794,959	2,808,422	2,817,353	2,809,563	2,758,828	2,686,878	2,540,439	2,537,156	2,506,929	2,526,947	2,612,420
Net profit margin		2.29%	7.85%	8.76%	9.82%	11.98%	13.65%	12.71%	12.68%	13.01%	14.76%	18.16%	17.31%	17.28%	15.71%	13.06%	10.98%	13.22%	14.66%	18.99%	21.12%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $69,675K ÷ $3,047,324K
= 2.29%

Net profit margin is a key profitability ratio that indicates the percentage of revenue that translates into net income after all expenses have been deducted. Analyzing Teleflex Incorporated's net profit margin data from March 31, 2020, to December 31, 2024, reveals fluctuations in the company's ability to generate profits effectively.

The net profit margin started at a healthy level of 21.12% in March 2020, indicating that Teleflex was efficient in converting sales into profit. However, there was a gradual decline in profitability over the next few periods, with the margin dropping to 8.76% by June 30, 2024. This decline could be attributed to various factors, such as increasing costs or changes in revenue streams.

It is noteworthy that there were some periods of recovery in profitability, such as the improvement seen in the net profit margin from December 31, 2021, to June 30, 2022. This indicates that Teleflex took measures to enhance its profitability during those periods.

The significant drop in the net profit margin to 2.29% by December 31, 2024, raises concerns about the company's profitability sustainability. It suggests that Teleflex may be facing challenges in managing its costs or maintaining revenue levels.

Overall, the trend in Teleflex's net profit margin shows fluctuations in profitability over the analyzed period, highlighting the importance of closely monitoring and managing expenses relative to revenue to sustain and improve profitability in the long term.