Align Technology Inc (ALGN)

Pretax margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	641,179	583,673	544,146	546,157	599,057	703,662	843,050	938,252	1,012,375	1,006,960	929,543	587,239	378,973	320,221	264,069	527,834	555,123	519,235	516,289	439,831
Revenue (ttm)	US$ in thousands	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	2,406,796	2,291,029	2,188,977	2,078,539
Pretax margin		16.60%	15.33%	14.56%	14.74%	16.04%	18.21%	21.13%	23.28%	25.61%	26.81%	26.76%	20.86%	15.33%	14.00%	12.22%	21.91%	23.06%	22.66%	23.59%	21.16%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $641,179K ÷ $3,862,257K
= 16.60%

To analyze Align Technology, Inc.'s pretax margin, we observe fluctuations over the past eight quarters. The pretax margin has been declining consistently since Q2 2022 when it was 23.28%. The trend continued through Q3 and Q4 2022 to reach 16.04%.

However, there was a slight uptick in Q1 2023 to 14.74%, followed by Q2 and Q3 showing further improvement at 14.56% and 15.33%, respectively. In Q4 2023, the pretax margin increased to 16.60%.

Overall, there is a general downward trend in the pretax margin from Q2 2022 to Q4 2023, indicating potential challenges in maintaining profitability efficiency for the company. Further investigation into the reasons behind these fluctuations would be necessary to assess the company's financial health accurately.