Wolfspeed Inc (WOLF)

Gross profit margin

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Gross profit	US$ in thousands	77,400	242,900	249,300	164,600	158,500
Revenue	US$ in thousands	807,400	878,100	699,200	478,000	880,600
Gross profit margin		9.59%	27.66%	35.66%	34.44%	18.00%

June 30, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $77,400K ÷ $807,400K
= 9.59%

The gross profit margin of Wolfspeed Inc has shown significant fluctuations over the past five years. In Jun 30, 2020, the gross profit margin was at 18.00%, which then substantially decreased to 9.59% in Jun 30, 2024. This decreasing trend indicates a potential decline in the company's ability to generate profit from its core business operations.

The highest gross profit margin was observed in Jun 30, 2022, at 35.66%, demonstrating a strong ability to effectively manage production costs and generate profits from sales. However, this was followed by a decrease in the gross profit margin to 27.66% in Jun 30, 2023, implying potential challenges in maintaining profitability levels.

Overall, the fluctuating trend in Wolfspeed Inc's gross profit margin highlights the company's evolving performance in managing production costs and generating profits from its sales activities. Further analysis of the company's cost structure and pricing strategies may provide insights into the factors driving these fluctuations.