Align Technology Inc (ALGN)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	608,959	641,062	637,243	664,966	641,204	583,645	544,175	546,195	599,057	703,748	843,095	938,288	1,012,423	1,006,953	929,510	587,215	378,949	320,204	264,078	531,418
Revenue (ttm)	US$ in thousands	3,999,012	3,960,519	3,942,861	3,916,541	3,862,257	3,807,046	3,737,180	3,704,563	3,734,635	3,864,220	3,989,782	4,031,039	3,952,591	3,756,011	3,474,245	2,815,749	2,471,941	2,287,208	2,160,405	2,408,788
Pretax margin		15.23%	16.19%	16.16%	16.98%	16.60%	15.33%	14.56%	14.74%	16.04%	18.21%	21.13%	23.28%	25.61%	26.81%	26.75%	20.85%	15.33%	14.00%	12.22%	22.06%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $608,959K ÷ $3,999,012K
= 15.23%

The pretax margin of Align Technology Inc has displayed some fluctuations over the past few years. The trend shows a general increase from March 31, 2020, when it stood at 22.06%, reaching its peak at 26.81% on September 30, 2021. Subsequently, there was a slight decline, followed by some variability, with the pretax margin hovering around the mid-teen percentages. As of December 31, 2024, the pretax margin decreased to 15.23%.

Overall, the pretax margin indicates the company's efficiency in generating profits before accounting for taxes, reflecting the proportion of revenue that translates into earnings. The fluctuations observed in the pretax margin may be influenced by various factors such as changes in revenues, operating expenses, cost management strategies, and economic conditions. Investors and stakeholders may monitor these trends to assess Align Technology Inc's profitability and operational performance.