Agilent Technologies Inc (A)
Pretax margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,339,000 | 1,504,000 | 1,360,000 | 842,000 | 919,000 |
| Revenue | US$ in thousands | 6,784,000 | 6,774,000 | 6,236,000 | 5,271,000 | 5,073,000 |
| Pretax margin | 19.74% | 22.20% | 21.81% | 15.97% | 18.12% |
October 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,339,000K ÷ $6,784,000K
= 19.74%
The pretax margin measures the efficiency of a company in generating profits before accounting for taxes. It is calculated by dividing the company's pre-tax income by its total revenue.
Based on the provided data, Agilent Technologies Inc.'s pretax margin has shown some fluctuations over the past five years. In 2023, the pretax margin was 19.60%, which was a decrease from the previous year's 21.96%. This dip suggests a potential decrease in the company's profitability relative to its revenue, possibly due to increased operating expenses, changes in pricing, or other factors affecting the company's profitability.
Comparing the current pretax margin to that of the previous years, we observe a downward trend from 2022 to 2023. However, the 2023 pretax margin remains above the levels of 2020 and 2019, indicating that profitability remains relatively strong compared to those years.
It is essential to further investigate the factors contributing to the changes in Agilent Technologies Inc.'s pretax margin. Analyzing the company's operating expenses, sales trends, and changes in the cost structure could provide additional insight into its profitability dynamics. Additionally, benchmarking the pretax margin against its industry peers can offer a broader perspective on the company's performance within its sector.
Peer comparison
Oct 31, 2023