Albertsons Companies (ACI)
Pretax margin
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,129,700 | 1,589,000 | 1,935,500 | 2,099,500 | 1,128,700 |
| Revenue | US$ in thousands | 80,390,900 | 79,237,700 | 77,649,700 | 71,887,000 | 69,690,400 |
| Pretax margin | 1.41% | 2.01% | 2.49% | 2.92% | 1.62% |
February 28, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $1,129,700K ÷ $80,390,900K
= 1.41%
The pretax margin of Albertsons Companies has exhibited fluctuations over the analyzed period, reflecting varying levels of profitability relative to its revenue. As of February 28, 2021, the pretax margin was 1.62%, indicating that the company retained approximately 1.62 cents of pre-tax profit for every dollar of sales. This margin increased significantly to 2.92% by February 28, 2022, suggesting an improvement in profitability and potentially more effective cost management or favorable sales conditions during that period.
However, this upward trend was not sustained, as the pretax margin declined to 2.49% on February 28, 2023. Despite remaining above the 2021 level, the margin experienced a noticeable decrease, indicating either rising costs, increased competitive pressures, or other operational challenges affecting profitability before the end of the fiscal year. The downward trajectory continued into the subsequent period, with the margin dropping to 2.01% by February 29, 2024, and further decreasing to 1.41% by February 28, 2025. This overall decline over the two-year span suggests ongoing challenges impacting pre-tax profit efficiency, such as cost pressures, pricing strategies, or market dynamics.
In summary, the pretax margin trend indicates initial improvement followed by a consistent decrease, reflecting a narrowing of profitability margins in recent years. The trend warrants further analysis into the underlying factors influencing costs and revenues to understand the long-term implications for the company's financial health and operational efficiency.
Peer comparison
Feb 28, 2025