Applied Materials Inc (AMAT)
Pretax margin
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 8,152,000 | 8,152,000 | 7,716,000 | 7,716,000 | 7,599,000 |
| Revenue | US$ in thousands | 27,176,000 | 27,176,000 | 26,517,000 | 26,274,000 | 25,785,000 |
| Pretax margin | 30.00% | 30.00% | 29.10% | 29.37% | 29.47% |
October 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $8,152,000K ÷ $27,176,000K
= 30.00%
Based on the provided data, the pretax margin of Applied Materials Inc has displayed a relatively stable performance over the analyzed period. Starting at 29.47% in October 31, 2022, the pretax margin slightly decreased to 29.37% by October 29, 2023, and further declined to 29.10% by October 31, 2023. However, there was a notable improvement in the pretax margin in the subsequent periods, reaching 30.00% both on October 27, 2024 and October 31, 2024.
This trend suggests that Applied Materials Inc effectively managed its pre-tax profitability during this period, with a minor dip in the middle that was quickly recovered in the later periods. It indicates that the company has been able to control its operating expenses and generate a stable level of pre-tax income relative to its revenue. Further analysis could explore the factors contributing to the fluctuations in the pretax margin and assess the effectiveness of the company's cost management strategies.