Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Return on Sales
Return on Investment
Marvell Technology Inc., profitability ratios
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30).
Analysis of the profitability ratios indicates a period of sustained operational volatility and net losses between 2021 and 2025, followed by a significant recovery in 2026. The overall trajectory is characterized by a marked decline in margins and returns during the 2024-2025 period, preceding a sharp inflection point in the final year of the analyzed timeframe.
- Gross Profit Margin
- The gross margin exhibited instability, initially hovering around 50% before contracting to a low of 41.31% by February 2025. A strong recovery is observed by January 2026, where the margin reached its peak for the period at 51.02%, suggesting an improvement in direct cost management or pricing power.
- Operating and Net Profit Margins
- Operating margins remained predominantly negative, with a brief positive excursion to 4.02% in January 2023. This was followed by a deterioration to -12.49% by February 2025. Net profit margins followed a similar pattern of volatility, reaching a nadir of -16.95% in February 2024 before surging to 32.58% in January 2026, indicating a substantial turnaround in overall bottom-line efficiency.
- Returns on Equity (ROE) and Assets (ROA)
- Both ROE and ROA remained negative for five consecutive years, reflecting a period where the company failed to generate positive returns on its capital and asset base. ROE fluctuated between a high of -1.05% in 2023 and a low of -6.59% in 2025. ROA mirrored this trend, remaining between -0.73% and -4.40%. A definitive reversal occurred in 2026, with ROE ascending to 18.66% and ROA increasing to 11.98%.
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Gross Profit Margin
Marvell Technology Inc., gross profit margin calculation, comparison to benchmarks
| Jan 31, 2026 | Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Gross profit | 4,180,700) | 2,382,200) | 2,293,600) | 2,987,500) | 2,064,225) | 1,488,350) | |
| Net revenue | 8,194,600) | 5,767,300) | 5,507,700) | 5,919,600) | 4,462,383) | 2,968,900) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 51.02% | 41.31% | 41.64% | 50.47% | 46.26% | 50.13% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 49.52% | 49.35% | 46.12% | 44.93% | 48.25% | |
| Analog Devices Inc. | — | 61.47% | 57.08% | 64.01% | 62.70% | 61.83% | |
| Applied Materials Inc. | — | 48.67% | 47.46% | 46.70% | 46.51% | 47.32% | |
| Broadcom Inc. | — | 67.77% | 63.03% | 68.93% | 66.55% | 61.36% | |
| Intel Corp. | — | 34.77% | 32.66% | 40.04% | 42.61% | 55.45% | |
| KLA Corp. | 61.30% | 60.91% | 59.97% | 59.81% | 61.00% | 59.93% | |
| Lam Research Corp. | 50.47% | 48.71% | 47.32% | 44.62% | 45.69% | 46.53% | |
| Micron Technology Inc. | — | 39.79% | 22.35% | -9.11% | 45.18% | 37.62% | |
| NVIDIA Corp. | 71.07% | 74.99% | 72.72% | 56.93% | 64.93% | 62.34% | |
| Qualcomm Inc. | — | 55.43% | 56.21% | 55.70% | 57.84% | 57.51% | |
| Texas Instruments Inc. | — | 57.02% | 58.14% | 62.90% | 68.76% | 67.47% | |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30).
1 2026 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 4,180,700 ÷ 8,194,600 = 51.02%
2 Click competitor name to see calculations.
The financial performance over the analyzed period is characterized by significant expansion in top-line revenue accompanied by periodic volatility in gross profit margins. While absolute gross profit showed a long-term upward trajectory, the efficiency of cost management and pricing experienced a notable contraction before reaching a period high in the final reported year.
- Revenue and Gross Profit Trajectory
- Net revenue experienced substantial growth, increasing from 2.97 billion US dollars in 2021 to 8.19 billion US dollars by 2026. Gross profit followed a generally positive trend, rising from 1.49 billion US dollars in 2021 to a peak of 4.18 billion US dollars in 2026, despite a temporary decline in the 2024 fiscal year.
- Gross Profit Margin Volatility
- The gross profit margin exhibited a cyclical pattern, fluctuating between a high of 51.02% and a low of 41.31%. After maintaining levels near 50% between 2021 and 2023, the margin underwent a significant contraction, falling to 41.64% in 2024 and further to 41.31% in 2025. This decline suggests a period of increased cost of goods sold relative to revenue or a shift in the product mix toward lower-margin offerings.
- Recovery and Peak Efficiency
- A sharp recovery is observed in the period ending January 31, 2026, where the gross profit margin rose to 51.02%. This represents the highest margin within the observed timeframe and coincides with the highest recorded annual net revenue, indicating a strong improvement in operational leverage and profitability efficiency.
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Operating Profit Margin
Marvell Technology Inc., operating profit margin calculation, comparison to benchmarks
| Jan 31, 2026 | Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Operating income (loss) | 1,322,900) | (720,300) | (567,700) | 238,000) | (347,668) | (258,389) | |
| Net revenue | 8,194,600) | 5,767,300) | 5,507,700) | 5,919,600) | 4,462,383) | 2,968,900) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 16.14% | -12.49% | -10.31% | 4.02% | -7.79% | -8.70% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 10.66% | 7.37% | 1.77% | 5.36% | 22.20% | |
| Analog Devices Inc. | — | 26.61% | 21.56% | 31.07% | 27.29% | 23.12% | |
| Applied Materials Inc. | — | 29.22% | 28.95% | 28.86% | 30.20% | 29.87% | |
| Broadcom Inc. | — | 39.89% | 26.10% | 45.25% | 42.84% | 31.03% | |
| Intel Corp. | — | -4.19% | -21.99% | 0.17% | 3.70% | 24.62% | |
| KLA Corp. | 41.69% | 39.28% | 34.10% | 38.06% | 39.67% | 35.97% | |
| Lam Research Corp. | 35.29% | 32.01% | 28.61% | 29.69% | 31.24% | 30.64% | |
| Micron Technology Inc. | — | 26.14% | 5.19% | -36.97% | 31.54% | 22.68% | |
| NVIDIA Corp. | 60.38% | 62.42% | 54.12% | 15.66% | 37.31% | 27.18% | |
| Qualcomm Inc. | — | 27.90% | 25.85% | 21.74% | 35.88% | 29.16% | |
| Texas Instruments Inc. | — | 34.06% | 34.94% | 41.85% | 50.63% | 48.84% | |
| Operating Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 34.52% | 20.84% | 18.20% | 26.84% | 27.90% | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | — | 30.76% | 26.46% | 24.34% | 26.23% | 26.58% | |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30).
1 2026 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Net revenue
= 100 × 1,322,900 ÷ 8,194,600 = 16.14%
2 Click competitor name to see calculations.
The financial performance over the analyzed period is characterized by significant volatility in operating profitability despite a general upward trajectory in net revenue. While revenue grew from 2.97 billion in 2021 to a projected 8.19 billion by 2026, the operating profit margin experienced sharp fluctuations, alternating between periods of operational loss and profitability.
- Revenue Growth Trends
- A consistent expansion in top-line performance is evident, with net revenue increasing steadily from 2021 through 2023. A slight contraction occurred in 2024, where revenue dipped to 5.51 billion, followed by a recovery and a substantial surge to 8.19 billion by the end of the period.
- Operating Margin Volatility
- The operating profit margin demonstrates a lack of stability. Initial negative margins of -8.70% in 2021 improved slightly to -7.79% in 2022, before shifting to a positive 4.02% in 2023. This gain was short-lived, as the margin deteriorated significantly over the next two years, reaching a period low of -12.49% in 2025.
- Profitability Inflection Point
- A dramatic reversal in operational efficiency is observed between 2025 and 2026. The operating income transitioned from a loss of 720.3 million to a profit of 1.32 billion. This shift resulted in the operating profit margin expanding from -12.49% to 16.14%, marking the highest level of profitability recorded in the provided timeframe.
In summary, the operational data reveals a pattern of aggressive revenue scaling accompanied by unstable cost structures or significant investment phases, culminating in a sharp transition toward operational leverage and profitability by 2026.
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Net Profit Margin
Marvell Technology Inc., net profit margin calculation, comparison to benchmarks
| Jan 31, 2026 | Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) | 2,670,100) | (885,000) | (933,400) | (163,500) | (421,034) | (277,298) | |
| Net revenue | 8,194,600) | 5,767,300) | 5,507,700) | 5,919,600) | 4,462,383) | 2,968,900) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 32.58% | -15.35% | -16.95% | -2.76% | -9.44% | -9.34% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 12.51% | 6.36% | 3.77% | 5.59% | 19.24% | |
| Analog Devices Inc. | — | 20.58% | 17.35% | 26.94% | 22.88% | 19.00% | |
| Applied Materials Inc. | — | 24.67% | 26.41% | 25.86% | 25.31% | 25.53% | |
| Broadcom Inc. | — | 36.20% | 11.43% | 39.31% | 34.62% | 24.54% | |
| Intel Corp. | — | -0.51% | -35.32% | 3.11% | 12.71% | 25.14% | |
| KLA Corp. | 35.57% | 33.41% | 28.15% | 32.27% | 36.06% | 30.04% | |
| Lam Research Corp. | 31.27% | 29.06% | 25.68% | 25.88% | 26.73% | 26.72% | |
| Micron Technology Inc. | — | 22.84% | 3.10% | -37.54% | 28.24% | 21.16% | |
| NVIDIA Corp. | 55.60% | 55.85% | 48.85% | 16.19% | 36.23% | 25.98% | |
| Qualcomm Inc. | — | 12.51% | 26.03% | 20.19% | 29.27% | 26.94% | |
| Texas Instruments Inc. | — | 28.28% | 30.68% | 37.16% | 43.68% | 42.35% | |
| Net Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 29.97% | 14.42% | 16.64% | 25.04% | 25.45% | |
| Net Profit Margin, Industry | |||||||
| Information Technology | — | 25.66% | 20.48% | 20.24% | 22.27% | 23.48% | |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30).
1 2026 Calculation
Net profit margin = 100 × Net income (loss) ÷ Net revenue
= 100 × 2,670,100 ÷ 8,194,600 = 32.58%
2 Click competitor name to see calculations.
The financial trajectory indicates a prolonged period of net losses characterized by significant volatility in profit margins, culminating in a substantial pivot toward profitability in the final period. While revenue demonstrated a general upward trend, the inability to translate this growth into net income for five consecutive years suggests a period of high operational expenditure or strategic investment.
- Revenue Trajectory
- Net revenue experienced consistent growth from 2021 through 2023, rising from US$ 2.97 billion to US$ 5.92 billion. A slight contraction followed in 2024, with revenue dipping to US$ 5.51 billion, before recovering to US$ 5.77 billion in 2025 and accelerating sharply to US$ 8.19 billion by 2026.
- Net Profit Margin Fluctuations
- The net profit margin remained negative throughout the 2021-2025 interval. An initial narrowing of losses occurred in 2023, where the margin improved to -2.76%. This was followed by a significant deterioration in 2024, where the margin dropped to its lowest point of -16.95%, indicating a period of severe margin compression. A marginal recovery to -15.35% was noted in 2025.
- Profitability Turnaround
- A dramatic shift in financial performance is observed in 2026. Net income moved from a loss of US$ 885 million in 2025 to a positive net income of US$ 2.67 billion. This shift resulted in a net profit margin of 32.58%, marking a complete reversal from the previous trend of negative returns and indicating a substantial increase in operational efficiency or a surge in high-margin revenue streams.
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Return on Equity (ROE)
Marvell Technology Inc., ROE calculation, comparison to benchmarks
| Jan 31, 2026 | Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) | 2,670,100) | (885,000) | (933,400) | (163,500) | (421,034) | (277,298) | |
| Stockholders’ equity | 14,308,400) | 13,427,000) | 14,831,400) | 15,637,200) | 15,702,097) | 8,435,804) | |
| Profitability Ratio | |||||||
| ROE1 | 18.66% | -6.59% | -6.29% | -1.05% | -2.68% | -3.29% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 6.88% | 2.85% | 1.53% | 2.41% | 42.18% | |
| Analog Devices Inc. | — | 6.70% | 4.65% | 9.32% | 7.54% | 3.66% | |
| Applied Materials Inc. | — | 34.28% | 37.77% | 41.94% | 53.51% | 48.08% | |
| Broadcom Inc. | — | 28.45% | 8.71% | 58.70% | 50.62% | 26.99% | |
| Intel Corp. | — | -0.23% | -18.89% | 1.60% | 7.90% | 20.83% | |
| KLA Corp. | 76.08% | 86.56% | 82.00% | 116.01% | 237.04% | 61.53% | |
| Lam Research Corp. | 58.26% | 54.33% | 44.82% | 54.94% | 73.35% | 64.85% | |
| Micron Technology Inc. | — | 15.76% | 1.72% | -13.22% | 17.41% | 13.34% | |
| NVIDIA Corp. | 76.33% | 91.87% | 69.24% | 19.76% | 36.65% | 25.64% | |
| Qualcomm Inc. | — | 26.13% | 38.60% | 33.51% | 71.81% | 90.88% | |
| Texas Instruments Inc. | — | 30.73% | 28.39% | 38.53% | 60.02% | 58.27% | |
| ROE, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 26.76% | 11.16% | 12.69% | 21.59% | 24.91% | |
| ROE, Industry | |||||||
| Information Technology | — | 34.38% | 28.82% | 31.26% | 38.03% | 41.64% | |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30).
1 2026 Calculation
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 2,670,100 ÷ 14,308,400 = 18.66%
2 Click competitor name to see calculations.
The financial performance over the analyzed six-year period is characterized by a prolonged phase of net losses followed by a sharp transition to profitability. Return on Equity (ROE) remained negative from 2021 through 2025, reflecting the persistent impact of net losses on shareholder value before a significant recovery in the final year.
- Net Income Trajectory
- Net losses were observed for five consecutive years, exhibiting significant volatility. A peak deficit of $933.4 million was recorded in February 2024. This trend reversed abruptly by January 31, 2026, when net income shifted to a positive $2.67 billion, marking a substantial pivot in profitability.
- Stockholders' Equity Fluctuations
- Equity experienced a sharp increase between January 2021 and January 2022, rising from $8.44 billion to $15.70 billion. Subsequently, a gradual downward trend occurred, with equity declining to $13.43 billion by February 2025, coinciding with the periods of highest net losses. A modest recovery to $14.31 billion was observed in the final period.
- Return on Equity (ROE) Analysis
- ROE remained negative for the majority of the period, reflecting the inability to generate positive returns on shareholder capital. While there was a brief improvement toward -1.05% in January 2023, the ratio deteriorated to its lowest point of -6.59% by February 2025. This negative trend was decisively broken in January 2026, with ROE surging to 18.66%, indicating a dramatic improvement in operational efficiency and profitability relative to equity.
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Return on Assets (ROA)
Marvell Technology Inc., ROA calculation, comparison to benchmarks
| Jan 31, 2026 | Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income (loss) | 2,670,100) | (885,000) | (933,400) | (163,500) | (421,034) | (277,298) | |
| Total assets | 22,285,300) | 20,204,500) | 21,228,500) | 22,522,100) | 22,108,597) | 10,764,924) | |
| Profitability Ratio | |||||||
| ROA1 | 11.98% | -4.38% | -4.40% | -0.73% | -1.90% | -2.58% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 5.64% | 2.37% | 1.26% | 1.95% | 25.46% | |
| Analog Devices Inc. | — | 4.72% | 3.39% | 6.79% | 5.46% | 2.66% | |
| Applied Materials Inc. | — | 19.28% | 20.86% | 22.31% | 24.41% | 22.80% | |
| Broadcom Inc. | — | 13.52% | 3.56% | 19.33% | 15.69% | 8.91% | |
| Intel Corp. | — | -0.13% | -9.55% | 0.88% | 4.40% | 11.80% | |
| KLA Corp. | 26.91% | 25.28% | 17.90% | 24.07% | 26.37% | 20.23% | |
| Lam Research Corp. | 30.88% | 25.10% | 20.42% | 24.02% | 26.78% | 24.59% | |
| Micron Technology Inc. | — | 10.31% | 1.12% | -9.08% | 13.11% | 9.96% | |
| NVIDIA Corp. | 58.06% | 65.30% | 45.28% | 10.61% | 22.07% | 15.05% | |
| Qualcomm Inc. | — | 11.05% | 18.39% | 14.17% | 26.39% | 21.93% | |
| Texas Instruments Inc. | — | 14.46% | 13.51% | 20.12% | 32.16% | 31.48% | |
| ROA, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 15.55% | 6.13% | 7.13% | 12.17% | 13.29% | |
| ROA, Industry | |||||||
| Information Technology | — | 15.31% | 11.80% | 12.34% | 14.33% | 14.52% | |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30).
1 2026 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 2,670,100 ÷ 22,285,300 = 11.98%
2 Click competitor name to see calculations.
The analysis of profitability ratios reveals a period of sustained negative returns followed by a significant positive inflection in the final fiscal year. Between 2021 and 2025, the Return on Assets (ROA) remained consistently negative, reflecting a period where net losses were incurred against a substantial asset base. However, this trend reversed sharply in 2026, marking a transition to positive profitability.
- Net Income Volatility
- Net losses were persistent from 2021 through 2025, with the most significant deficits occurring in February 2024 and February 2025, where losses reached 933.4 million and 885.0 million, respectively. This period of loss was abruptly terminated in January 2026, when net income surged to 2.67 billion, indicating a dramatic improvement in operational efficiency or revenue realization.
- Asset Base Expansion and Stability
- A substantial increase in total assets is observed between January 2021 and January 2022, with the asset base more than doubling from 10.76 billion to 22.11 billion. Following this expansion, total assets remained relatively stable, fluctuating between 20.20 billion and 22.52 billion over the subsequent four years. This suggests a period of asset integration and utilization following a major capital expansion.
- ROA Performance Trends
- The ROA exhibited an initial narrowing of losses from -2.58% in 2021 to -0.73% in 2023. This improvement was short-lived, as the ratio deteriorated to -4.40% and -4.38% in 2024 and 2025, corresponding with the deepest net losses. The trajectory culminated in a sharp recovery in January 2026, with the ROA rising to 11.98%. This shift demonstrates that the company successfully leveraged its asset base to generate significant positive returns after five years of negative performance.
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